The Indian stock markets have been in a tizzy following a resounding victory by the Congress party. The Sensex gapped higher from 12219 a day before to open at 13479 the day after the election results. Today, the markets reached a high of 15045, up 23% after the election results.
The 10-minute chart shows three attempts at 15045 and it couldn’t break higher. Subsequently, the lower neckline was violated. This is a good early warning of an imminent correction. Look for a move down to 14170 first. We will probably get some fresh buying there, driving the index slightly higher. But eventually we should see the index decline to at least 13375.
hi mr. ramki,
I agree with your analysis and today’s s&p move validates it. Do you agree with all the pundits’ hypothesis that we may have entered into a new bull market for indian equities. I am still waiting for the analysis for those stocks that I asked earlier. Please try and have a look at them when you get some free time.