Sensex :
Sensex responded to the extreme oversold condition of fast stochastics and the supports at around 19000 worked even today.
In the opening trades sensex fell back to supports and started to recover in the afternoon,
Technical analysis is a great subject to learn it has the capacity to deliver hints every time about what market is going to do but as a student of the subject we have to become so flexible to absorb what the subject delivers.
The one hint after looking at the sensex/nifty/bse national/small cap/mid cap index that we are getting is a possibility of a triple bottom kind of a pattern on their eod charts. There is a long way to go for this and we have to watch weather sensex is able to cross 61.8% retracement level of the last big crash or not than we will start looking at this triple bottom possibility.
And there is no need to have any confusion about our 2011 view of a larger c wave to unfold for a downside target of around 15000 for sensex at this point of time.
Nifty again made a low of 5711 in yesterdays panic and one must remember that when everyone was highly bullish for our markets from short/medium/long term perspective we were the first to give a nifty target/strong support of 5700 and it is clearly evident now after even more than two months since we had given this target that 5700 is working as a support for so many days.
We have to watch what nifty does around 5937 and 5994 first if nifty reacts from these levels than we will study how the reaction is and that study will reveal about any possibility of a triple bottom reversal pattern.
5/8/13 ema band is strong resistance and adx value above 34 is another indication of momentum on bearish side but even after such bearish technical parameters if nifty becomes stronger we will be generating buy calls using intraday charts.
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