Two reasons for a correction !

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Tech View - Jan 10 2006

Sensex closed in Red on second session of the week, down by 86 points at 13566 levels with decent volume of Rs 4678 cr.

Market witnessed more than 200 points fall (from top to bottom) on 2nd consecutive day.Sensex has formed a “Continuation” pattern which indicates weakness in the trend but after a pullback rally. Sensex has still maintained the importance of Bearish candle which is created on Monday. To nullify the importance of this Candle the Market has to sustain above the 13727 levels which is 50 |% of candle. If it does then trend could be positive and 14000 levels can be seen. But failure of this could lead Sensex up to 13230 levels.

Tech View - Dec 15 2006

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Sensex closed in green on 2nd consecutive day, up by 305 points at 13487 levels.Sensex opend with upside gap and sustained the gap throughout the day.

Sensex has formed Bullish pattern followed by continuation pattern which indicates strongness of pullback rally which signals another 200-300 or more points rally if maintain 13360 levels. As per weekly scenario, Sensex is forming a huge Bearish candle which indicates the possibilty of another 1500 points fall. To nullify this bearish scenario the current pullback rally must close above 13560 levels on last day of the session or must do sideway movement above today's gap for next 3-4 days. If it does then there could be chance of 14180 or more levels or else 11800 levels cold be witness as a trend reversal.


Support 1) 13400 2) 13320 3) 13280 4) 13230 imp.

Resistance 1) 13560 2) 13640 imp 3) 13790 imp 4) 13860.

Tech View - Dec 14 2006

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Sensex closed in green, up by 186 points at 13181 levels.

It was choppy session as Sensex opened up and slipped towards days low at 12830 levels but managed to close in positive at the end on 4th day of fall.

Sensex has formed a continuation pattern which indicates that weakness in the trend will continue ( minimum 12580 levels ) but, after a pullback rally of 300-400 points. On weekly basis Sensex is forming a huge bearish candle which leads another 1500 points fall. To nullify this bearish scenario this pullback rally must close above 13560 for next 2 days. If it close above 13560 then there could be chance of 14180 or more levels or else 11800 levels could be witness as a trend reversal.


Support 1) 13090 2) 13010 3) 12900 4) 12780.

Resistance 1) 13490 2) 13602 imp 3) 13790 4) 13860.

Tech View - Dec 8 2006

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Sensex closed in green marginally up by 22 points at 13972 levels with average volume of Rs 3787 cr.

A choppy session witnessed on 3rd consecutive days as Sensex opened up and slipped towards days low at 13915 levels and again managed to hit days new high at 14002 levels. At the end it managed to give positive close by 22 points.
Sensex closed in green marginally up by 22 points at 13972 levels with average volume of Rs 3787 cr.

A choppy session witnessed on 3rd consecutive days as Sensex opened up and slipped towards days low at 13915 levels and again managed to hit days new high at 14002 levels. At the end it managed to give positive close by 22 points.

Sensex has formed a Green candle which indicates the sign of pullback rally i.e. the weakness in the trend will remain as it is as long as Sensex holds below 13990 levels. The Empty bearish candle which was created on 5th of this month still has importance for bearish scenario. To nullify the importance of this candle Sensex must hold above 13990 levels for next day. If it does then 14180 level could be seen or else correction could be witness to 13760 or more.


Daily strategy: - If opens up and hold below 14040 levels then sell for the T1 of 13820 with Sl of 14080 levels.
Support 1) 13950 2) 13910 3) 13860 4) 13760

Resistance 1) 13990 2) 14040 imp 3) 14180 4) 14260 will nullify the rules of Irregular pattern.

Tech View: Dec 7 2006

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Sensex closed in green ( as compared with yesterdays close ) marginally up by 11 points at 13949 levels with decent volume of Rs 4541 cr.

It was choppy session as Sensex opened with upside gap but failed to sustain above important 13990 levels and made a new low of 13847 levels as compared with yesterday.

Sensex has formed a Empty ( Bearish ) candle on 2nd consecutive days which indicates that the weakness in the trend will remain as it is. The Empty bearish candle which was created on 5th of this months still has importance for bearish scenario. To nuliffy the importance of this candle Sensex must hold above 13990 levels for next 2 days. If it does then 14180 level could be seen or else correction could be witness to 13760 or more.


Daily strategy : - If opens up and hold below 14030 levels then sell for the T1 of 13820 for the second half with Sl of 143940 levels.

Support 1) 13900 2) 13840 3) 13720 4) 13660

Resistance 1) 13990 2) 14040 imp 3) 14180 4) 14260

Tech View: Dec 6 2006

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Sensex closed in green ( as compared with yesterdays close ) up by 63 points at 13937 levels with decent volume of Rs 4748 cr.


Sensex has formed a Empty ( Bearish ) candle which indicates weakness in the trend. It seems to be a profit booking on higher levels on 2nd day of the session as Sensex opened with hudge upside gap and closed up only by 63 points by forming a Empty candle. To nuliffy the importance of candle this candle Sensex must hold above 13990 levels. If it does then 14180 level could be seen or else correction could be witness to 13760 level.


Daily strategy : - If opens up and hold below 14030 levels then sell for the T1 of 13820 for the second half.
With Sl of 13940 levels.
Support 1) 13830 2) 13780 3) 13720 4) 13660

Resistance 1) 13990 2) 14040 imp 3) 14180 4) 14260

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