Sensex Aug. 2009 (Action Replay?)

The current Sensex picture looks eerily similar to the roadmap of Sensex in Jan 2008 before the big crash. Refer to the post. http://terran23.blogspot.com/2009/08/sensex-2008-redux.html

Sensex 2008 redux

BSE Sensex chart for the 2008 Bull market top is displayed here. The points a,b,c,d,e,f,g,h and i are marked for the roadmap taken before the fall of the cliff.

Reliance Ind. at a crossroad.

Reliance Ind is critically poised between two trendlines. The upper one which is sloping downwards has halted any rally. The lower one is connecting the two bottoms and is a support line which the bulls have defended so far. The next few trading sessions will be critical. A breakdown will take the stock the gap area around 1580. A move higher will test the 2100 levels.

Shanghai Index update

As expected and posted on 14th August, the Shanghai Stock Exchange Index has hit the lower target of 2800 and in fact has closed lower. The index seems to be in free fall with hardly any support coming in. This action usually takes place when fundamentals are out of whack with the price of the index. Lower tgts of 2600 and 2400 are not far!

My earlier post http://terran23.blogspot.com/2009/08/shanghai-stock-exchange-index-update.html

Nifty Update

Nifty is critically poised atop the upward sloping trend line. 4350 is the level where bulls have made a stand and so far are holding it very well. A close below this level will see bulls liquidating and the next downward tgts of 4250 and 4180 being hit.

Shanghai Stock Exchange Index update

The SSEC (Shanghai Stock Exchange Index) seems to have put in a intermediate top (3478 on 4th August, 2009). The index had rallied from a low of 1674 on 28th Oct. 2008. The downtrend has accelerated and immediate support is available at 2900 and below that at 2800 (38% retracement of the entire rally from the bottom) This might be a precursor to the Indian stock market movement so caution is advised.

Nifty - short term update

Nifty is ready to break the support line (S) which runs parallel to main trend line (A) which has been the support for the rally from 2500 to 4700. In case of the downtrend accelerating the Fib targets for supports are at F1, F2 and F3.