SENSEX AS ON 29.10.2010

after last top at 20855 we have seen lower top at 20452. on Friday we bounced from strong sup area around 19800 from where no of bottoms are seen in chart.still we are in downward channel.coming days will be full of events which can have impact on markets and we may see volatility also.

* RBI  policy - change in interest rates

* FED  meeting- announcement of further actions

* Coal India listing - refunds credit

* Obama visit to India - IT/ Defense  industry related announcements

us dollar index and Indian rupee is also in sideways . quarterly earning season is almost over. liquidity from foreign flows ,             the major trigger for rally will  be decided in coming days . so we may see decisive move after clarity in next week.

decisive break of 19800 can generate sharp dnmoves bcz of tentative inverse head n shoulder pattern shown in chart.

decisive close above 20350 or decisive move above 20450 may indicate end of correction started from 20855  .

fibo levels for reference.

17820 to 20855

38.2 % 19696

50    % 19338

61.8 % 18979

20855 to 19769

38.2 % 20184

50   %  20312

61.8 % 20440