tech view 200111

BSE SENSEX (18978.32.80)       SUPPORTS : 18862/18691 RESISTANCE : 1917260410Ar nifty ast stochastics/19403 TRENDS : SHORT TERM : DOWN INTERMEIDIATE : DOWN LONG TERM : UP Yesterday it self we said here very clearly that the expected correction is here but the 200+ points upmove in sensex on Tuesday looked to be only a correction and we also said that unless Larsen/reliance/bhel starts moving up the rally can not pick up momentum and all these three biggies did not get any upside trigger in price action and sensex found stiff resistance at 50% retracement of the last leg of crash and with reliance and sbi leading the crash sensex at one stage was down by 180+ points. Sensex closed at -113 points shows that the correction may have ended with a short term channel on eod charts we can have further downside targets for sensex atleast upto 200 day sma and further upto 50% retracement level of last big rally which are at 18690 and 18539 respectively NSE NIFTY (5691.05) SUPPORTS : 5650/561032.70TY (6121.6901 RESISTANCE : 5750/5817 Nifty also opened a little high on taking cue from strong asian markets but initially with Larsen going down heavily nifty went in to red but bounce back on strong metal sector recovery but then with sbi and reliance taking downside lead nifty went below Tuesdays lows but recovered 30+ points still closed below 5700. If nifty future trades and closes below 5638 today we strongly feel that it may break its 200 day simple ma also which is at 5609 and nifty may have down side target at 5556 and 5507

Chart – I                     (All Price Charts as on 19th JANUARY 2011)

ADVANCE / DECLINES BSE Advances 141678059.0999647.77day ema is placed at 18408 as on yesterday.ns would be very very severe and the next minimum target for sensex could  ea Declines 1387 Unchanged 190 BSE TURNOVER (Rs. In Crores) Cash 3476.86 Future -- Total 3476.8676.86 KEY SENSEX AVERAGES Daily Short Term Avg 19388 Near Term Avg 1 19688 Near Term Avg 2 19606 200 EMA 18827