Weekly review: Be long and cautious

Sensex: (14745)
Nifty: (4375)

We said 'Technically the market now is in a sell mode and any up moves that we may wittiness is more likely to be reactions to this down move until a strong support emerges...technically we may see some violent reaction and stops may get triggered but the down move continues'

Well we were expecting some violent reactions, but what unfolded was perhaps more than a violent reactions and it totally surprised market players...the up move that we witnessed last week has negated the down move for the time being.

Technically the market has closed on a firm note but interestingly against a strong resistance... now if the market has to go up and sustain then it needs a strong breakout from these levels...failing which I would like to view the market in a sideways zone with an upward bias...

A strong support exist at 14420 and resistance to the up move is at 15160

A strong support exist at 4275 and resistance to the up move is at 4560

From a trading point of view I would be long and cautious

Prakash Gaba is a professional technical analyst and a trader based in Mumbai and runs his own consultancy.

Weekly review: Be long and cautious - Prakash Gaba