Nifty Sensex This Week

The week that went by
The Sell-off is continuing. The stock market indices across the globe fell drastically in the week went by. The economic turmoil is spreading to
Europe and economy of Iceland reported to be the first causality. The meeting of the Financial Chiefs ohttp://www.blogger.com/img/gl.bold.giff the G-7 nations decided to take every
steps to overcome this situation.
The steps taken by the Central Banks across the globe to flood the financial markets with liquidity has failed again. The RBI cut the CRR by a
huge 150 basis points in 2 stages during the last week to 7.5% from 9%; however, this also failed to lift the sentiments. NSE Nifty lost 538
points (14%) from the previous week’s closing and settled at 3279.95; Sensex closed at 10527.85, losing 1999 points (16%).

Technical Outlook :
The market has reached the first Technical Target of 3400-3200 levels from the Correction which started from the all-time high of 6357. Now,
some recovery can be expected from these levels in the coming days.
The Stochastic Oscillators is indicating a positive divergence, even though the direction is not confirmed yet.
At current levels, 3200 can be regarded as the Critical Support level for the NSE Nifty. If sustains above this some recovery can be
expected in the market, which can extend towards the first resistance of 3600, followed by 3750.
A failure to sustain above 3200, however, will possibly target the index towards 3000 levels and further towards 2750 levels in the
immediate future.
For BSE Sensex 10250 range is a strong support zone. If fails to sustain above this, the index will target the downside support zone of 9500.
The downside support for the coming week is expected to be 8900. The upside resistance will be 11695, followed by 12500.