Wednesday's High would act as strong resistance - Angel Broking

Yesterday, once again our benchmark indices opened on a flat note and made a valiant attempt to move higher. However post mid-session, we observed immense selling pressure and markets fell below Tuesday's low to close in the negative territory.

During the session, Consumer Durables, FMCG, Metal and Capital goods counters influenced the fall in the second half; whereas the Auto and Oil & Gas sectors defended the market.

The advance to decline ratio was marginally in favor of declining counters (A=1395 D=1575) (Source - www.bseindia.com).

We have observed that indices are facing tremendous resistance near the 'Upward Sloping Trend Line' mentioned in our earlier reports. This is also supported by the 'Negative Divergence' in daily 'RSI' momentum oscillator. The impact of these negative technical tools was seen yesterday during the second half. This has resulted in breakdown of the 'Upward Sloping Channel' in hourly chart. Hence, going forward, if our benchmark indices manage to sustain below yesterday's low of 19627 / 5958, then indices may drift lower towards 19509 - 19406 / 5935 - 5897 levels. On the flipside, Wednesday's high of 19824 / 6020 would act as strong resistance in coming trading session.

Source : Equity Bulls

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