India BSE SENSEX Stock Market Trends

After analysing stock market indices in many regional markets, I am thinking of taking a new stock market to take a look. That’s India stock market – BSE SENSEX. India market was one of the hottest market in the last 2-3 years. It was one of the bullishest market. Of course, the bull has escaped after the financial crisis hitting the Dow Jones and India stock market has fallen quite a lots as well.

Let’s take a closer look at India BSE SENSEX stock index now!

India BSE SENSEX LOST 61.8%

I looked at the India BSE SENSEX stock index. The first thing that I did was to draw the Fibonacci from the peak at the end of last year to the low in 2001. First impression that I got the from the Fibonacci lines show that India stock market has also fallen about 61.8% in value on SENSEX.

Of course, 61.8% Fibonacci line is a key critical support. However, I have seen that it has been broken last month. Breaking the Fibonacci 61.8% is very bearish signal as it suggests a possible downward movement till the 100% level. (I have been using this to analyse and look at Dow Jones and S&P500 to fall and touch 2002 low, pretty reliable so far!)

So, will the same thing happen to India SENSEX index, I do not know. But there is a possibility.

On the other hand, I have seen that there is an immediate support near 8,700 level. It is very important to see if this immediate support will hold or not. This support was touched once end of Oct and I think it is now going to re-test the 2nd time. If it holds, good… there is a possibly ending of downward movement and swing into a sideway market. Otherwise, breaking such support will be a great opportunity to short the stock.

I personally do not trade in India market. Anyone out there know if there is a SHORTing facility on India stock market?

India BSE SENSEX Stock Market Trends

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

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