Indian markets saw the most wildest swings ever last week but ended on a good note on the eve of Republic Day. The great fall of Tuesdays was certainly not a technical one but more due to systemic mechanism failure resulting in lack of buying support (infact it looked as if buying was stopped systematically) and the bears had a field day. For the benefit of viewers we had put up the previous post 'SENSEX OUTLOOK - OUT OF DANGER' when it had just returned from support level around 15,350 at 12.15 pm but all the reports suggest that no one could buy anything at all. But then if buy was allowed freely it would not have fallen so much either.
Whatever may be the truth of systemic mechanism failure the sensex took support at long term rising channel support line confirming continuation of the long term upswing. It has been proven by the subsequent recovery in the market. Our technical view thus stood vindicated. Now on the markets are likely to continue the upswing but with wild swings giving opportunity to strategic long term investors as the market sentiment stands on a very fragile footing with liquidity likely to improve after refunds of the ipo. Global cues would continue to haunt the markets till the
time some bigger trigger restores market confidence.
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