Market Update

The current day’s upswing of 516 points on the Sensex might sound relief for a lot of investors who are still holding on their investments from higher levels; however, not for long as this signals the beginning of a fresh downtrend. This rise is triggered mainly by interest rate sensitives like the banks. If you look at the chart of SBI, it has already completed a 50% re-tracement and is headed down further. For some banks like PNB, this break looks very positive as it signals a fresh intermediate up move. For the intermediate term, the Sensex is expected to be ranged from 13800 to 15500. Sensex has marginally broken the resistance level of 15504. However, an established break would alone confirm a fresh up move. For the next week, expect the market to slide down further as its closer to resistance.