SENSEX Daily Chart
As evident from the daily chart markets are facing strong resistance and during the current week market tested the trend line twice but failed to cross above that. On the down side markets are having a strong support at 15300 which is marked by a blue horizontal line. This is the low which was formed on January 22, 2008. This is the fourth time markets are testing this support.
Looking at the daily chart the view for current week is very much unclear and a lot depends on US markets. Our markets are exhibiting a lack of strength inspite of global markets doing well. According to me markets may test the bottom of 14700 once again. Any break out below 14700 will signal further down side upto 13700 and 12700.
The only positive signal is form Dowjones which had shown considerable strength during current week. If US markets are able to sustain higher level, we will see its effect on our markets. Considering candlestick pattern Dowjones is forming a Morning star pattern in current month which is one of the most bullish pattern observed. Dowjones will show considerable strength if it is able to close above 12800 which will result into major upside for our markets.
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