Daily Technical Note

BSE Sensex and Nifty have exhibited a bearish candlestick with a long tail. This indicates that there was genuine selling coupled with heavy bull offloading that led the speed of the fall in markets emerging from higher levels.

Based on the chart pattern developed to date, one may use the level of 4240 (Nifty) and 14,350 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 4,340-4370 level and the Sensex at around 14,600 -14,750 levels.