FKLI Commentary on 20/01/09

FKLI December futures contract close marginally 1.5 points lower at 892.5 as compare to previous trading session with total 4707 lots traded in the market. FKLI was mainly traded sideways throughout the entire trading session.

Technically, FKLI seems temporary support above 885 regions. We expect FKLI would test 61.8% Fibonacci support levels at 880 levels in the coming trading session. However, EMA-80 and EMA-100 seem converging in the hourly chart which leads to temporary sideways market. Traders were advice to hold long on correction in the coming trading session provided support levels 880 and 865 were not violated. Resistances were seen at 904 and 918 region.