Last down move..?

Major Indices: Sensex : 16063 Nifty : 4739 Intermediate Trend: Bearish – Stop 17212 Key Technical Levels: 16626- on the upside; 15848- on the downside It was said – in the previous review- “Bears are in control of the market; as long as the Sensex is trading below the recent falling gap area of 16626, the recovery or even short term bounce is ruled out; if failed then fall up to 15850 or 15300, in next couple of weeks looks imminent”. The bulls tried to fight back and posted a high of 16666 for the Sensex, as against the falling gap (highest point) area of 16626, but failed to protect the territory with a “close” above 16626, thereby losing over 670 points in the last 3 trading sessions. After yesterday's sharp cut, the bears had successfully dented the strong support area of 16000-16200. In the process the Sensex has also closed below the falling parallel channel, confirming the weakening structure. On the downside, we expect, the Sensex should settle down near about 15300 region, at least in the near term. As of now it’s difficult to anticipate the weakness below 15300 region. However, if it happens, then the situation will be aggravated further. Market discount ‘everything’ well in advance; as such in this current slide from 21k+ level, it must have discounted many economical, political & many other factors, already. But if market slide down even below the 15.3 -15k level, it will be a great concern and another indication that “all the negatives” are not yet factored (discounted) in the price. Overall, we are of the view that, the daily as well as weekly charts confirms the continuation of the down trend started from recent high of 17.7k, with a near term price objectives of 15.3k. On the upside firm trading & close above 16626 will be the first sign of bullish revival (not a trend reversal). Position your trades accordingly