SENSEX WEEKLY CHART
Dowjones was down by 2.5% on Friday closing. Hence it is implied that there will be gap down opening in our markets on Monday. I am pasting the weekly chart of Sensex. We can observe that Sensex is having a strong support at around 17000 levels. Its very important for the market that Sensex do not break this support other wise we will witness another round of sell off in the equities market.
SENSEX DAILY CHART
Dowjones was down by 2.5% on Friday closing. Hence it is implied that there will be gap down opening in our markets on Monday. I am pasting the weekly chart of Sensex. We can observe that Sensex is having a strong support at around 17000 levels. Its very important for the market that Sensex do not break this support other wise we will witness another round of sell off in the equities market.SENSEX DAILY CHART
If we have a close look at Sensex daily chart we can observe the formation of a symmetrical triangle on charts. Sensex is hovering dangerously close to the support levels which exist at around 17300. If there will be a decisive break out form this pattern the only support which exists is at around 17000. Dowjones is looking very weak at this juncture and it seems that there will be another round of selling in the US markets which will in turn trigger another round of sell of in Global markets. If there this proves to be true there will be significant corrections in Indian Markets. The next major support exist at around 14500 levels. The probability of a negative break down can not be ruled out at this juncture so its better to keep your portfolio tilted towards cash allocation. I will also advise traders to keep strict stop loss in all their derivatives position.
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