Daily Technical Note

BSE Sensex and Nifty have exhibited a Gravestone Doji candlestick as it has a long upper shadow which implies trend reversal following the weekly Doji. This indicates that there is a cautious approach in markets emerging at higher level. Technically, caution is advised in the market for the time being. Based on the chart pattern developed to date, one may use the level of 4200 (Nifty) and 14,200 in Sensex as the stop loss level for long positions. Breach of these support levels may lead to a deeper correction.

On the resistance front, the Nifty faces resistance at around 4,320-4350 level and the Sensex at around 14,550-14,750 levels.