SENSEX AS ON 15.10.2010

as shown in chart we crossed recent top of 20706 and made new high of 20855 and have broken last low of 20107 which was made before top of 20855. sensex closed at 20125 on Friday . we have seen higher high and higher low pattern since may end from 15960. on decisive moves below 20107 that pattern will change and we will be in sell mode with stop loss of last top made at 20855.

actually we should watch market in global perspective more precisely, we should look at global currencies .us dollar index has gone below 77 where it may get support and bounce may be seen. as shown in daily chart of us dollar index +ve divergence is seen in rsi chart but price action is yet to give confirmation.with weakness in dollar funds are flow to relatively stronger economies. change of direction of the same may change direction of fund flow.

if profit booking seen in last week is for mega ipo of coal India only prices shd not correct more.watch price action. sharp moves in currencies may bring sharp corrections in equity,gold and crude markets.

***************************************************************

UPDATE AS ON 18.10.10

STOP LOSS OF 20107 TRIGGERED DECISIVELY. SELL WITH STOP LOSS OF 20855

****************************************************************

update as on 20.10.2010

we have made lower top of 20332 on 19.10.2010 and broken bottom of 19870 made on 18.10.2010

STOP LOSS REVISED FOR SELL POSITIONS FROM 20855 TO 20332.

*******************************************************************

UPDATE AS ON 23.10.2010

WE HAVE RETRACED UP TO APPRX LOWER TOP FORMED AROUND 20350 AND CORRECTED AGAIN.50% RETRACEMENT LVL OF FALL FROM 20855 TO 19823 IS ALSO AT 20339.US DOLLAR INDEX AND RUPEE HAS ALSO SHOWN SIMILAR PATTERNS.

DECISIVE MOVE ABOVE 20350 ZONE WILL BRING MORE STRENGTH.OTHERWISE WEAKNESS WILL CONTINUE.