Indices
Tuesday, November 26, 2013
AT THE VERGE OF BREAKOUTS: BE CATIOUS:
LIKELY CHANCE OF BREAKING IT ON DOWNSIDE:
COUNTDOWN BEGINS NOW:
1. BSE500, sensex, nifty, BSE Bankex all four showing clear 5 wave declines as per chart attached. It’s confirming “TOP” on main Index established on DIWALI Only at high of 6342.95 levels & 21321.53 levels on sensex on 03.11.2013, its unlikely to be surpassed in short term.
2. In short term, whether it will form leading diagonal or it will straight away extend as C2, C3…& so on downside as per chart attached, will be confirmed only @ 5970 levels. If it holds then one more last pull back rally possible till 6230 levels or else heading straight away towards 5700 levels.
3. BSE SMALL CAP, MID- CAP & NSE MIDCAP also showing completion of TOPISH DISTRIBUTIVE kind of TRIANGLE patterns as per chart attached Unless it turns out to be Running Triangles which looks unlikely because momentum are in sell, its in favor of Bears at current levels of market. These all Indices still closed above 20 DMA i.e. Final confirmations to conclude trend reversal coincide with Triangles breakdowns as per chart attached.
All this evidences showing likely chance of breaking this range on down side, therefore, one should be cautious at current levels of market. I would recommend to book profit & be stock specific at current levels of market. One should avoid to built-up any kind of fresh positions till it confirms breakouts from trading perspectives at current levels of market.