Market seems to be undecided at current levels. Next 2 weeks would be interesting to watch as index could either go all the way to 4600 /15500 in worse case or continue to hold on. !
Check chart below for details.
Sensex Technical View :
Although index has been oversold but the pullback has not been able to cross 16600 !! . On the downside sustaining below 16k opens up to 15500. As mentioned last week index positions shud be reduced arnd 16600.
So as mentioned before best case is 16k holding up or index goes to 15500 also.
Technically many stocks are highly oversold but it can remain so for a long time. So this is a time to wait and watch. Avoid leveraged trading as index can give flip flop movements on both sides hitting stoploss on either side.
Investors can continue to be patient with their long term investments done in fundamentally sound stocks. In due course we would see good recovery in them.