Weekly Review for the Week October 27th - 31st October 2008 - Technical View.
>> Sunday, October 26, 2008
We said ‘Technically the market still looks weak and there is no sign of strength so far the next level to watch beyond 9705 is 9325 and 8508 and 2908 on the Nifty front. If the market is UP on Monday then a sharp short covering reaction is not ruled out and that is a BIG if ‘ The market unfolded beautifully as expected. The market came down to 9700, stopped and then cracked 9700 to go to 9325 and then proceed downwards 8508. Technically the market still looks weak and there is no sign of strength so far but 8508 on the Sensex and 2517 on the Nifty is a strong support to deal with, the crack of which could see the Sensex slide down the next level of 8048 or 2411 on the Nifty. We are now heading into an F&O expiry week and so sharp reactions are not ruled out. The supports on the way down are at 8508-8408-7613 and resistances on the way up are at 1911 The supports on the way down are at 2517-2411 and resistances on the way up are at 3047 From a trading point of view I would be short but cautious, as sharp reactions are not ruled out
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