Anand Rathi: Caution advised

Anand Rathi, in its outlook for the day says that Sensex and Nifty have exhibited a strong bearish candlestick and the indices have moved below important support levels. This has bearish implications and it indicates that there is selling pressure emerging at higher levels.

Based on the chart pattern developed to date, caution is advised in the market for the time being.

On the resistance front, the Nifty faces resistance at around 3490 and the Sensex at around 11,975 level.

Technically, for the market to regain its upward momentum, the indices must stabilize above these resistance levels. Till such time the current trend can be assumed to be in a corrective mode.

On the support front, the Sensex may find support at around 11,300 level. Nifty on the other hand may find support between 3325-3300 levels.

On the oscillator front, the MACD line has moved into the sell mode and the RSI line has turned downwards. Both these oscillators are indicating that the possibility of a further correction cannot be ruled out.