TECH VIEW

SENSEX:there was another attempt from BULLS to protect the earlier lows of SENSEX around 15800 and infact as expected SENSEX opened with a GAP DOWN even went below previous lows but recovered smartly closing above the earlier lows at 15809 and 15847

SENSEX will face resistance 16086-16118 first and then the BEARISH GAP at 16277-16295 will be a tough zone.

If SENSEX does not break 15809 on CLOSING BASIS and CLOSE ABOVE 16295 in this week we may be in for another upside.

But before going long one must wait for SENSEX to first close above 16118 and better above 16295

A GAP in general works as a RESISTANCE so if SENSEX closes above 16295 it will be a very bullish sign.

NIFTY: for NIFTY the earlier BULLISH GAP between 4758-4767 once again worked as a support

A few days back FUTURE NIFTY took support at this gap as it made a low of 4767 and yesterday SPOT NIFTY INDEX made a low of 4760 and we did see a close back above 4803

This is the precise reason why I mention a CLOSE above or below levels to prefer a confirmed break out

On last Thursday I had suggested that if NIFTY CLOSES below 4830 it will be bad sign NIFTY made a low of 4831 and closed at 4841 yesterday NIFTY made a low of 4760 but yet again closed at 4848

So now I would prefer a close below 4758 for the down trend to resume

On the upside plenty of RESISTANCE zone first will be 4883-4889 and second zone will be the BEARISH GAP at 4949-4982 levels.

So for a STRONG UPSIDE NIFTY must close above 4982.