Amidst clamour all around that the markets are very weak, would take a long time to recover, likely to consolidate for a long time with sideways moves etc the SENSEX moved up sharply and firmly recovering nearly 37 - 40 percent.
This time it has a new support line parallel to the original long term support line. This line probably factors in the higher growth rate India is likely to achieve for next number of years. Also interestingly the SENSEX is finding it difficult to surpass resistance line running through 2003 high and recent high after October 09 bottom.
Around the resistance line it has made FLAG pattern as shown in the daily chart and as with such continuation pattern on breaking the resistance line successfully it can blast and continue the upmove but now waiting for the elections results and formation of new government.