Sensex Technical View:
Sensex is continuing the slide after breaking the triangle towards 15800-16100 zone where the next major support range lies. The worst case for the market can only come if markets tend to sustain below 15400 such a situation is still not in the scenario as of now. Strategy should be to wait with the cash generated and fresh capital. Indices need a good healing period before they can consolidate.
The current correction as expected will see more impact on the index stocks and will keep it under pressure with so much of bad news like ICICI subprime , budget implications etc are coming every other day. In weak sentiments even a no news is bad news so volatility and correction should continue. Many mid caps do look exciting as they have not seen any fundamental change and valuations are nice so long term investors with 6 mths to 1 yrs should look to increase equity exposure at regular levels.
All the global indices are still trading above or near to the supports which in case was around 16450 of our Sensex . Sensex has closed below the level and is overperforming on the downside as well. So all indices globally need to be seen closely in this week and coming week to see whether they stabilize near to this intermediate support or are going to test the Jan 21-22 lows.
Best Regards,
Nooresh
9819225396
