Daily Technical Analysis

Market reacts on lower volumes

The Sensex opened positive however, immediately turned down ward and traded lower the trend remained negative throughout, in the end it has given a negative close of 75 points at 14495.77.

Sensex trend indecisive; remain cautious till clear trend emerges

The Sensex as expected moved down ward, it has given a close near the crucial support levels of 14441 (Nifty 4250), its behaviour around this level would be crucial it need to maintain 14441 for the trend to remain positive, in case, the Sensex breaks below 14441 then it could move down to 14366 to 14291 (Nifty 4232 to 4202) range. The nature and extend to which it moves down ward would decide the Sensex future trend. At the lower levels 14046 would be the crucial trend change level for short term
trend below it the trend would have a negative bias.

Wave count: Trend to remain bullish

An alternative count suggested last week looks feasible, were by the Sensex rise between 12711 to 14383 could be considered as a standard corrective pattern there after the Sensex downward move from 14383 to 13554 as wave-x and the present upward beginning from 13554 could be an another standard corrective pattern. As it has been the case in the past, if the pattern formation of the second standard corrective pattern is same as the first standard corrective pattern; the second corrective pattern could then move up to 14914 to 15551 levels by the end of June. All long positions should have a stop loss placed at 13554(Nifty 3981) levels.