CORRECTION DUE.

SENSEX :

SENSEX has again given a good close but as one can see on chart the STOCHASTIC is on overbought zone and SENSEX very much near its RESISTANCE zone and our SAR level.

As suggested yesterday SENSEX is due for some down side correction it will test very short term EMA support and it will also test the GAP but it will be a good buying opportunity IF correction remains slow.

Also notice the 89 and 200 DAY EMA both are placed at around 18680 and our SAR level is 18725.

NIFTY :

Our “SAR” LEVEL for nifty was 5605 and yesterday NIFTY made a high of 5597 also NOTE the 200 DAY EMA value is 5592 as on today it was 5597 yesterday combined with these we suggested overbought STOCHASTIC .

And one can see on the chart that the stochastic is in overbought zone so a correction is due.

Looking at the strength of rally started from last Thursday IF such correction remains slow we MAY have one good buying opportunity but all depends upon the SPEED of correction which should last for 3-4 days.

5509 and 5432 will be good support levels for next few days.