SENSEX : SENSEX climbed back inside the 38.2% retracement level of 15990 we said yesterday that a move above 15987 and 16046 can trigger a short term up side rally and once SENSEX sustained above 16046 in the first hour there was no look back.
A LOW at 16433 and a HIGH at 16549 both these levels are crucial to be watched for SENSEX.
If SENSEX closes above 16549 today there will be a short term BUY ON DIPS kind of situation but since this week is shortened today can prove a very dull day after a gap up open.
For NIFTY we suggested a pull back rally if NIFTY can climb back above 4777-4796 and NIFTY sustained above 4796 for the first hour it self on a good asian markets.
As said earlier a stronger move will come in coming days if NIFTY closes above 4965.
Then there is a possibility of NIFTY reaching 5053 and a close above 4965 will make us believe that there will short term BUY ON DIPS like situation as NIFTY will come down as it will form a HIGHER BOTTOM against the low of 4720.
We have presented a NIFTY FUTURE HOURLY CHART and if NIFTY FUTURE CLOSES above 4973 it will have short term target at 5020 and then A CORRECTION will form a higher bottom with STRONG SUPPORTS AT 4848.
4848 is the next TREND DECIDER LEVEL.