Major Indices :: Sensex : 14809 :: Nifty : 4503
Intermediate Trend :: Bearish
Key Technical Levels :: 15690- on the upside : 14581- on the downside
In the last review we have stated, expect a fierce battle between the wide ranges of 15100-166250; and especially 16250-16754 area in the Sensex will provide an ideal battle ground for bulls and bears. We have seen 16683 on the Sensex; and also the surrender of the bulls. Eventually the Sensex also breached our support levels of 15063, yesterday. What next?
The environment is full of distress. For the bears it’s an easy walk, no brain; just see what the Nikkei and HangSeng is doing and just go short. One can see money flowing easily in the bear’s camp. Circumstances are likely to favor the bulls, provided they retaliate and close the week (short week of only 3 trading sessions) above 15690, best case scenario a weekly close within/above the following gap area of 15873-16064 (see cha
On the downside, below the current close of 14809, the area to watch is 14163-14581. Anything below this will lead to a disastrous situation where the Sensex will be exposed to a low of 13779, formed on 17th August 2007. This could be a worst case scenario for the Indian equities (as an asset class), ever after the Sensex has formed cyclical bottom of 2904 on April 2003.In short, for the bulls, it’s not only a testing time, but also a question of survival.
