SENSEX: it is going to be range bound trading only if SENSEX remains above 17504 the day SENSEX closes below 17504 it will again move downwards.
On the other side if SENSEX can close above 17786 which is very strong resistance it can have a little more CORRECTIVE upside for a few days.
The ADX on daily chart of SENSEX is above 33 which clearly suggests strong downside momentum so even day traders must take lot of care while trading for short term upside corrections.
NIFTY : once our target of 5177 reached (spot nifty missed it by a few points) we have witnessed a bounce back from there.
As we all know our targets are support levels also as 5177 was January-2011 lows it can give support BUT important thing for us to watch the STRENGTH of the upside from supports .
We have observed that when PANIC LOWS held there can be a corrective upside for some time and INFACT such correction from panic lows are only to CORRECT time wise more then price wise so it will consuming a few days here in the 100-150 NIFTY range and resume the downward journey again.
There can be a little bit more upside if NIFTY can give a close above 5328 and on the other side a close in coming days for NIFTY below 5254 will be bearish and will take nifty to 5159.
Also note that at present NIFTY AND SENSEX are trading below the BIG YEAR LONG CHANNEL and below 89 WEEK EMA but it should be here at the week end for confirmation of the break down
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