October 20, 2014

Market outlook

Current trend is down and will revert to buy on close above 8000 spot.

Today was the first "higher high higher low" formation. Within a downtrend, upto 2-3 "up" days are considered normal.

Option writing is not giving any clues  as we are heading into expiry week. NOV series clues point to support at 7500 (this is preliminary, basic and based on insufficient data).

EOD charts - show rangebound markets.

Intraday charts show rangebound movement with limited upsides. This is understandable given the strong gapup opening.

Hourly charts will turn to buy on close above 7920 spot.

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