Tuesday, May 19, 2009


Sensex: We said, "With corrective phase holding strongly above the gap-up of 4th May, groundwork for a sharp rally above 121272 appears in place." In its sharpest rally ever, Sensex hit two consecutive circuits, halting the trading for the day at a level which was a huge 17% higher. All stocks and sectors gained, none declined.

The less-than-a-minute action formed a strong bull candle standing with a huge 10% gap-up area
below its tail. Sensex now moves closer to 50% correction level to previous 14-month fall from 21206
to 7697, which is at about 14500. With previous high (before 'Oct fall) at 15580, it should find resistance nearby.

To see full report: CALLS 190509