Wednesday, March 25, 2009


Sensex: We said, "Trading above candle's high of 9455 can test upper end of Green channel ... This could be the short term target/resistance for the Index." Up nearly 3% initially, Index did touch the target, only to find its short-term resistance as argued. Retracing all the gains, it closed flat. Metals lost 3%. A/D ratio ended -ve.

The action formed an up day, but a bear candle with an upper shadow. This indicates hesitation at technical resistance near upper channel and last month's high. But it doesn't indicate breakdown as yet, until we see a strong selling below its low at 9400. Holding 9400 can, therefore, encourage positive efforts, perhaps initially.

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