SENSEX AND FTSE 100 INDEX

TECHNICAL VIEW FOR THW WEEK STARTING FROM 16^TH AUGUST 2011:

ON WEEKLY charts SENSEX and NIFTY both index has broken down VERY IMPORTANT TRENDLINES and both has also given a decisive close below their respective 89 WEEK EMA in addition to this both index has given decisive close below their February 2011 and june 2011 lows on weekly basis.

TECHNICALLY this confirms that the sideways move during February-july was only A CORRECTIVE DISTRIBUTION PHASE after markets fell very sharply in the initial down side leg started from November 2010.

4848-4777 for NIFTY and 16200-15989 for SENSEX remains our first achievable targets after this BREAK DOWN events.

4625 and 15200 are our next targets for both NIFTY and SENSEX respectively BUT as usual we will see what sort of support indices takes at first targets before giving a call on these targets.

Our favourate indicator ADX is very high on both daily and weekly charts suggesting strong down side momentum.

The EMA BAND (5-8-13) IS in sell mode on both daily and weekly charts and MORE IMPORTANTLY if markets can not recover till this month end EVEN thIs EMA BAND will generate a sell call on MONTHLY CHART.

LONGER TERM PICTURE FROM CHARTS :

For our markets we had earlier compared our SENSEX move with FTSE 100 INDEX and we argued BEFORE this big time correction started that SENSEX has been mimicking the FTSE 100 INDEX SINCE LONG and the ongoing DOWN MOVE was well anticipated as a LARGER C WAVE .

We clearly observed that SENSEX IS ONE LEG BEHIND THE FTSE 100 INDEX and as per this view the current down leg in SENSEX is not going to break the earlier low of 2008 but it will last 12-18 months time and this possibility was shown in our weekly technical review dated 12^th October 2010 and was repeated in a power point presentation in our annual conference early January 2011.

Here are a few charts in which we have compared SENSEX at present and compared its move with earlier moves in FTSE 100 INDEX.