Technical view by Nooresh

sensex bounce from 8800 -8950 range

The chart shows the support of 8820 and 8950 depends on which low we take and if someone is an elliot wave he mit take the one which matches his wave count but these are the two possible levels so taken the range.

one can use simple maths calculation 28/09/2001 low== 2594 high on 31/05/06 == 12671
take 38.2 % of this difference and subtract from 12671 gives the value of retracement .

As specified in earlier views in panics the level of 9600 will be broken and 9250 should provide support and we did ee a bounce of 500 odd points. At that time to extreme panic to take it to 8900 and below 8800 very scary for bulls rather bears party and i still maintain 8800 last hope.

buy on dips is wat i say coz markets may try knocking 10k in the days where very short term maybe intra profit booking should be done.Ideally after knocking 9800-9950 markets should pull down and consolidate before a clear direction is seen by end of this month or in 1st 2 weeks of july.

so depends whether your comfortable at current levels coz i still dont see clear directions need confirmation of some trading sessions to ensure the correction is over.i had specified extreme panic level of 8900 and below 8800 scary and it still holds below 8800 it get scarier so thats the stoploss so try buying closer to it.

Article by Nooresh Merani

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