INDIAN MARKETS IN A FIRM BEAR GRIP

Sensex : the sensex breached 18050 and that was all.

We did clearly mentioned a few points in last few days one was that the correction must remain slow second was that if the positive structure has to work sensex must close above 18457 which was Tuesdays high third was protection of 18050 fourth was extreme high overbought position of dow jones and  as sensex started to trade below 18050 it was clear that the supposed head and structure is not going to work and as we said in our weekly technical view if such positive structures fails it can have severe downside impact.

Any rise from now on will be short lived and will have to be used to create short positions only.

Sensex has strong resistance at 17927- 18050-18081-18370 some support at 17519 and 17295 but in coming days we should see 16372 coming as a first target and a halt.

NIFTY: nifty was unable to cross 5527 although in last two days it tried to touch 5500 but there was some selling pressure seen at that level that is precisely why we said on nifty chart yesterday that theoretically the price structure looks like a head and shoulder but it must cross the neckline and correction which would have been a right shoulder must remain slow which was not to be and once below 5408 even 5369 did not work as a support.

For today strong resistance at 5337-5369-5408 any rally should be used to short nifty and stocks as we can have positional nifty target at 5083 and 4945 in coming days.