Following is an analysis of major indices in India and I have included BSE Sensex, BSE Metals, BSE IT, BSE Teck, BSE Auto, BSE Realty and NSE BankNifty here:
BSE IT: BSE IT Index is making bearish Head & Shoulders formation, below 5400 it would be broken and further 300 point fall is not ruled out as per the pattern logic. Above 5600 move would negate the formation. Below 5400 up channel would be broken too.
BSE Metals:
Weekly Graph: This has been getting support at 13 Week EMA so far and now same is becoming resistance, weak signs for Metal stocks.
Daily Graph: Rising wedge seen in BSE Metals Daily graph, below 15000 more fall of 8-10% magnitude not ruled out. Be cautious in Metal stocks for time being.
BSE Teck: Its broke out was very good but didn’t last for long as it quickly came below the resistance again. Now it has broken down from up channel and shows bearish Head & Shoulders formation. Below 3350 caution advised in stocks forming part of this index.
BSE Auto: This Auto Index is forming a rising wedge. Normally this formation is seen in a down trend and that is more bearish but here it is seen in up trend. This is largely driven by TATA MOTORS which has 22% weight in BSE Auto index. But if 8500 below move is seen CAUTION advised in these stocks.
BSE Realty: It has broken falling wedge to show up trend, went into rising channel. Now 3800 above if it can sustain more rallies in Realty stocks possible, below that sideways-to-down trend may persist.
NSE BankNifty: This Banking Index moves very rapidly now and is in sharp up trend. Rising channel is a clear sign of strength but such steep channels are difficult to sustain for a long time. Technical picture needs to be revisited after some time again to find if some exhaustion or reversal is happening.
BSE Sensex – The Big One: Sensex is in rising channel from the last 10 months and whenever upper line is touched nasty falls are witnessed. Now we are very close to that level once again.
Since early July again we seem to be forming a rising wedge and also it is a broadening formation. So now 18100 and 17800 are very important supports breaking which there is a big probability that we may touch lower channel once again and that is near 16400. If 18700-level is crossed on sustainable basis, bearish scenario would be negated until that breakout sustains.
