BSE SENSEX (18,376.48)

The SENSEX opened the session on a positive note and traded with smart gains for the initial hours of the day’s trade. The index hit an intraday high of 18672.65 levels. But the index couldn’t sustain at higher levels as the session progressed and selling pressure at higher levels dragged the index to an intraday low of 18345.85 levels. The SENSEX lost close to 327 points from its day’s high. The index finally closed the session at the 18,377 levels with a loss of 118 points.
 
The overall market breadth remained choppy and flat throughout the day’s trade and the advance decline ratio closed equally in favour of the advances and the declines in the ratio of 1:1 The Oil & Gas Index led by Reliance Ind. was the biggest looser amongst the sectoral indices as it closed the session with a cut of 1.50%. The Metal index also closed with a cut of 1% for the 2nd straight session of trade. The Capital goods and Consumer durables indices closed the session with smart gains.
 
The SENSEX closed the last trading session of the week on a negative note. The key observation to be made is that after the formation of the bullish hammer candlestick pattern during the previous week, the SENSEX has managed to close above the lower boundary of the rising channel as shown in the adjoining (Chart II).The correction witnessed over the past two trading session could halt and take support between the 18250—18000 levels. On the upside we expect the levels of 18550--18700 levels to act as stiff resistance.

However in case the SENSEX fails to take support at the 18000 levels and starts to trade below the same, we would recommend a negative bias once again with possible targets of 17750 – 17500 levels.

We booked part profits on our long call given on GMDC Ltd @ 150 levels. (Initiated @145 levels). The recommendation has already fetched a smart gain of Rs 10,000/- per lot to the subscribers of our product Trading calls section. We continue to hold our long positions for targets of `155 levels.
 
We recommend subscribing to our product Trading Calls section to avail such profitable Equity Trading calls.
Today’s supports for the SENSEX are placed at the 18100 and 18250 levels whereas resistances are placed at the 18500 and 18650 levels