SENSEX : a caution was advised to all yesterday itself that
there is a STAR candle pattern and if the pattern gets a follow up GAP DOWN
move and a move below 16865 will confirm an end to the ongoing CORRECTIVE rally
mainly so because indecisiveness happened at a CRUCIAL resistance level.
After a gap down open SENSEX crashed below 16865 and never
recovered resulting in a massive 700+ points crash in a single day.
In our weekly chart book that SENSEX must close above
17209-17300 for a change in intermediate trend SENSEX did make some attempt but
failed at 17191 on Wednesday.
Every
rally is to be used to create fresh short positions because a seeming INVERTED
HEAD & SHOULDER pattern is on the verge of failure which will have drastic
effect on SENSEX
NIFTY : for NIFTY we said that if NIFTY goes below 5068 it
may end the corrective rally and a close below 4927-4915 will confirm an end to
the on going up ward move and it will also break the STEEP TRENDLINE SUPPORT
and all happened in a single day.
Even such a strong almost a 500 NIFTY POINTS RALLY was never
addressed as a BULL MARKET rally and was clearly termed as a BEAR MARKET rally
only.
There will be supports around 4720 in coming days if today
NIFTY gets a decisive close below 4890 but it seems that NIFTY COULD BE HEADING
TOWARDS 4625-4538 in short term.
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