Sensex: Could fall again tomorrow

SENSEX (BSE) Daily Chart Analysis

Sensex closed above the 20,000 psychological level for the 5th consecutive day today. Close: 20028

Market Outlook:

• The current expectation of the market going towards a new high seems doubtful to me.
• There is a chance that the market might slip below resistance again.

Technical Indicators:

• A Shooting Star candlestick pattern has formed.
• There is a high possibility the index will fall below resistance tomorrow and close about 50 points below today.
• If this happens, it'll be a bearish signal.
• Alternately, if the index does not fall and rises instead, than it can be considered as a good sign as the resistance line is now truly acting like a support line and the index could move up.
• Either way, the market should be able to give a future directional indication tomorrow. 

SENSEX (BSE) Daily Chart Analysis

Sensex closes just above resistance today

SENSEX Daily Chart Technical Analysis:

Sensex closed at 19864 today, after opening at 19698 and falling to an intraday low of 19554.  Overall, it closed 166 points higher than its opening, and 217 above yesterday's close.

Market Overview:

• Sensex will most probably remain range bound tomorrow and not register a major change from today.

Technical Indicators: 

• The index closed just a tad above its long term resistance line today.  The same thing had happened on Tuesday but the market could not sustain this yesterday and close below.  Tomorrow, the same thing could happen.
• The index does not seem to have the force to break through resistance as of now.  Next week either it will build that strength and climb with a bang, or it will lose steam and fall with a whimper.  Next week could see some big moves in either direction.
• If it falls, the support line is around 18920.

SENSEX Daily Chart Technical Analysis



Sensex & NIFTY Create Morning Star Patterns

Sensex (left chart) and Nifty (right chart) have created a morning star pattern each before the end of the last week.

The other indicators are also showing probability of a rise.

The markets should rise in the coming week 25-29 Oct 2010.