Tech View: Nov 8 2006

Sensex closed in Negative Territory down by 30 points with decent volume of Rs 4714 cr.

Choppy session continued for the 2nd consecutive day as Sensex opened with upside gap and made a new 'psychological' high of 13300 levels and slipped almost 150 points from the top. A minor correction was seen on On 5th day, which is a Fibonacci ratio.

Sensex has formed a Bearish candle with higher upper shadow pattern which shows weakness' in the current trend and could lead the correction upto 12920 levels.
To nullify the bearishness, Sensex must hold above 13270 levels for next two days. If it does then 13700 level could be possible but if it fails then there could be chance of 12920 levels.

Daily Strategy: - If opens up and hold below 13260 level then sell for the target of 12920 levels with sl of 13320 levels for the second half.


Support 1) 13120 2) 13020 3) 12920 imp 4) 12800 as part of triangle

Resistance 1) 13260 2) 13320 3) 13460