A PULLBACK RALLY POSSIBLE

Because of some strong technical selling signals like roc going below zero 21/34 daily ema sell cross and macd sell signal on weekly charts all these combined with an expanding price structure break down on daily charts and candlestick reversal patterns on weekly charts have played havoc among investors or traders on the upside this downside rally can easily be a first leg of a larger correction but here on we expect a halt or an upside corrective from sensex levels around 19151/19065/18948 for so watch some buying coming in around these levels in a day or two.



Nifty : support : 5746-5723 resistance 5876-5907
For nifty also on Tuesday it made a hammer but lack of following failed the pattern and broke the earlier lows so today or on Monday we would expect nifty to reach our medium target which are around 5700 precisely there are two important support levels for nifty one is 5746 the other is 5723 but if some panic continues then we expect nifty to make one panic low at 5687 so watch these levels for two days but while mentioning these supports we clarify that we need nifty to close above 8/13 day ema for 2-3 days for any sustained up move so till that happens any rise will be better to sold off.


NIFTY HAS MOVED DOWN IN  A CHANNELED MOVE SUCH MOVES GENERALLY DO NOT VIOLATE MAJOR SUPPORTS.