In the previous review when the Sensex was at 15757, we had stated, “Wounded bulls are in retaliation mode, the odds are in favor of the bulls, expect a fierce battle in the range of 15300-16450 before shifting of the control, decisively”.
Since 28th March, the Sensex was moving in narrow range of 16500-15300 (shake out zone). In this process, it has formed a triangle pattern on the daily charts. (See chart). Yesterday, its has given a upward break out with a strong thrust beyond 16000. As anticipated, now, the control has been shifted in favor of the bulls with Intermediate trend turning bullish. Stop 15655.
| When the Sensex was trading at 14677, we were vouching for a bullish trend & advised investors to buy on every sharp decline. The strategy has proved correct & yielded 10% gains, so far. Now expect a continuation of the intermediate uptrend with an initial target of 17020 and then 17225. However, instead of euphoric buying expect a systematic rise with stock specific actions. |
Conclusion: After a long & fierce battle, the bulls have taken a control over the market, at least in the near term. As long as 15655 remains protected, the market will be in the hands of bulls. Long term investors may reduce their cash positions in favor of frontline stocks. Expect an initial rise up to 17020 and then 17225 in the next 2-3 weeks.
