Last week we had indicated weakness in the market and the same was witnessed as the Sensex fell to a low of 12822.
The Sensex opened last week at 13791.02 attained a high at 13872.06 and fell to a low of 12822.75 to close the week at 13454 and thereby showed a net fall on 320 points on a week-to-week basis.
Our expected range on the lower side was 12671-12344 against which we have seen Sensex attaining low of 12822. The weekly pivot was placed at 12739 as well.
The Sensex showed a good recovery on Wednesday, 2 July 2008, when it recovered from low of 12822 to close at 13664. The high registered the same day was 13712. On Thursday, we found that high level of 13712 was not to be seen as the market opened gap down on Thursday to close lower but it did not violate 12822. On Friday, it bounced back without violating the low of Thursday. For this week, the resistances will be at 13712 and last week’s high of 13872.
The Sensex will now have to cross and close above 13872 in order to confirm the low of 12822 as the intermediate bottom and also to end one leg of the corrective cycle. The next leg of the corrective cycle could be up for an overall pull-back of the fall from 21206 to 12822. For this to happen, a breakout and weekly close above 13872 is required.
A fall and close below 12822 will take the Sensex to test the down range of 12671-12344 and could even violate it. The Sensex must, therefore, cross and close the week above 13872. We may also find some kind of sideway moves between 13872 -12822.
The Sensex opened last week at 13791.02 attained a high at 13872.06 and fell to a low of 12822.75 to close the week at 13454 and thereby showed a net fall on 320 points on a week-to-week basis.
Our expected range on the lower side was 12671-12344 against which we have seen Sensex attaining low of 12822. The weekly pivot was placed at 12739 as well.
The Sensex showed a good recovery on Wednesday, 2 July 2008, when it recovered from low of 12822 to close at 13664. The high registered the same day was 13712. On Thursday, we found that high level of 13712 was not to be seen as the market opened gap down on Thursday to close lower but it did not violate 12822. On Friday, it bounced back without violating the low of Thursday. For this week, the resistances will be at 13712 and last week’s high of 13872.
The Sensex will now have to cross and close above 13872 in order to confirm the low of 12822 as the intermediate bottom and also to end one leg of the corrective cycle. The next leg of the corrective cycle could be up for an overall pull-back of the fall from 21206 to 12822. For this to happen, a breakout and weekly close above 13872 is required.
A fall and close below 12822 will take the Sensex to test the down range of 12671-12344 and could even violate it. The Sensex must, therefore, cross and close the week above 13872. We may also find some kind of sideway moves between 13872 -12822.