Tech View - Pullback Expected

Sensex closed in Negative Territory on the 2nd consecutive day, down by 84 points with volume of Rs4037Cr.

Choppy session continued for the 3rd consecutive day as Sensex opened with upside gap and slipped towards important support level and bounced back almost 100 points. But this pullback rally failed to sustain the important 13260 levels which lead sensex down by 250 points from the days top.

As per our previous notes what we were looking for is C wave of correction which targeted 12920 level. As of now Sensex has corrected upto 12951 level, very close to the target. If it is part of the flat pattern then it must hold above 12920 level otherwise it could be a part of a triangle and 12860 or more lower level could be expected as a leg of the triangle.

Sensex has formed a Bearish candle with lower shadow pattern which indicates a weakness in the trend which will remain the same. To Nullify the bearishness,
Sensex must hold above 13130 level which is more than 50 % of previous candle. If it does then 13700 level could be possible otherwise 12860 or more lower level can be seen.


Daily Strategy: - If Index opens downside and hold above 13000 level then buy for the target of 13180 levels with a stoploss of 12980 levels for the first half.
( A pullback rally is expected )

Support 1) 13030 2) 12990 3) 12950 4) 12920
Resistance 1) 13180 2) 13260 3) 13340