The Sensex has been trading in a channel pattern and also broken out off a broad range with a gap between 18,590 and 18,616, which will be a very crucial support going forward.
Sensex- Daily view:
- The Sensex has been trading in a channel pattern and also broken out off a broad range with a gap between 18,590 and 18,616, which will be a very crucial support going forward.
- The momentum indicator has given a positive crossover and is trading above the zero line.
- The key support would be around 19,000 and 18,590, and resistance would be around 19,450 and 20,000.
- In the short term, the index is consolidating in a range between 19,450 and 19,200, and is expected to take support around 19,200 and head up till 20,000.
Sensex- Weekly view:
- The Sensex has been forming higher tops and higher bottoms on the weekly charts with support around the 20-weekly moving average, ie 18,300.
- The leg on the upside as wave C or 3 has already started and is expected to move up till 21,205.
- On the weekly charts, the momentum indicator has given a negative crossover, trading above the zero line.
- As the index has broken out of a narrow range between 18,000 and 16,000, it is expected to continue the positive momentum and the strategy should be to buy on declines.
- The key support would be around 18,254 and resistance would be around 20,000.
Sensex- Monthly view:
- According to the Elliott Wave theory the index has completed wave Z and a new move on the upside has started as wave 3 or X, which can move up till 20,000/21,205.
- The Sensex has formed a double top around the all-time high, ie 21207, which is a crucial resistance going forward.
- The Sensex has broken out of the consolidation range forming higher tops and higher bottoms which indicates that the new move on the upside has already started and has a very high probability of crossing the all-time high.
- The Sensex has taken support around the 20-monthly moving average, ie 17,592 levels, and is expected to form a positive close again on the quarterly chart.
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