WEDNESDAY, JANUARY 21, 2009

BELOW 8900 TRIANGLE BREAK DOWN ?

Sensex Technical View :

Sensex breaks the extreme short term range below 8900-8950. Technically sustaining below this level for 2-3 sessions gives a confirmation of triangle breakdown which could target 8300,7700 minimum and base size is more then 2k points so could be 7200-6500 also in worst case. For explanation check video posted below. We would look into further possibilities ( falll depth , long term implications , last fall etc etc ) only on 2-3 sessions of closing below this level.

Short term bias remains bearish and the next technical support comes around 8300-8500 in short term. Only a move beyond 9450 would change extreme short term view.


Stocks to watchout for :

Stocks with their support levels sustaining below which could give 5-15 % drop in bad market sentiments.

Hindalco .... below 47

RCAP ... below 395

RIL ... below 1060

Sesa Goa ... below 70

SAIL ... below 72.

Initiate trade only on sustaining below the given levels with a stop of 3-4 % .