LEVELS TO WATCH

SENSEX :as SUGGESTED we are having a few lackluster days SENSEX could NEITHER cross resistance levels NOR breach support level.

Such movement is a very normal after a big move takes place on either side and we have to judge the strength or weakness from supports and resistance respectively in such sideways period to judge in which direction the next leg of bigger move will come.

As mentioned earlier there is a possibility of an up move to fill up the BIG BEARISH GAP between 17358 and 17664 but even to do this SENSEX has to close above 17248 first and then above 17361 which is the value of its 8 DAY EMA as on today.

So for the day RESISTANCE AT 17248 AND 17361 AND SUPPORTS AT 16990 AND 16759 and a decisive close above or below these levels will decide further course of movement for a few days more.

On the upside it will be only a corrective rally on the down side it will be a continued down move after a pause.

NIFTY : NIFTY has got resisted at 5184 and found some support at 5121 as said earlier NIFTY needs a close above 5209 for an attempt to fill the BEARISH GAP at 5329.

In TECHNICAL terms such GAP filling is taken only as a corrective rally unless if NIFTY actually fills the GAP and we found some strength in the rally and NIFTY makes a higher bottom kind of formation .

As shown on NIFTY chart from 5209 to 5342 there are plenty of RESISTANCES so it should be an ideal short selling opportunity if NIFTY makes an attempt to fill the GAP and FAILS TO DO THAT.

A CLOSE BELOW 5116 AND 5054 will take NIFTY TOWARDS OUR TARGET ZONE OF 4848-4777.