Surprised!!!
Actually I meant to say Indian Stock Market is on a verge where the fall is going to be very severe. Nifty and Sensex after a month long flat-ish formation have created a situation where a big fall is imminent. The recent structure on weekly charts have paved the path which will keep the news channels busy for couple of weeks in December and may be January too.
Let's get straight to business
The weekly chart of Sensex clearly shows that we have reached the end of a triangle in a downward trend. Rsi sub 30 is also not a good indicator for coming weeks. Slow Stoch has clearly changed course which can spell disaster for Sensex. Levels to watch out next week would be 9341 on upside and more importantly 8467 on downside.
360 Degree Analysis for Nifty has thrown up the following levels
UPSIDE :
2592.43 2603.14 2613.85 2635.28 2656.7 2667.41 2678.12 2699.55 2720.97 2731.69 2742.4 2763.82 2785.25 2795.96 2806.68 2828.1
DOWNSIDE:
2809.39 2797.59 2785.78 2762.18 2738.57 2726.76 2714.96 2691.35 2667.74 2655.94 2644.13 2620.53 2596.92 2585.11 2573.31 2549.7 2526.09 2514.29 2502.48 2478.88 2455.27 2443.46 2431.66 2408.05 2384.44 2372.64 2360.83 2337.22 2313.62 2301.81 2290.01 2266.4
Here is an interesting read
What the Bear Market Has in Store, Part 1
"Forecasts for the Bear Market
Finance
- Stock markets around the world will continue to fall. Ultimately, the averages will drop more than 90 percent.
- Real estate values will fall more than they did in the 1930s and 1940s.
- Rating services will resume the trend of downgrading bond quality. Eventually, states, counties, cities, corporations and even nations will default on bonds in record amounts.
- Debt packages made of mortgage-backed bonds, auto loans and credit card debt will become viewed as unworthy investments.
- Many, if not most, pension plans will fall in value and be unable to provide the promised benefits. Anger over this development will result in demonstrations, violence and tardy and ineffective political reform.
- Prices for collectibles will continue to fall. Many will become little more than curios.
- More banks will fail than failed in the 1930s.
- The total amount of credit outstanding worldwide will decline substantially.
- The Federal Reserve chairman will be labeled a fool who is greatly responsible for the collapse."
Warren Buffett
"With each passing year, the noise level in the stock market rises. Television commentators, financial writers, analysts, and market strategists are all overtaking each other to get investors' attention. At the same time, individual investors, immersed in chat rooms and message boards, are exchanging questionable and often misleading tips. Yet, despite all this available information, investors find it increasingly difficult to profit. Stock prices skyrocket with little reason, then plummet just as quickly, and people who have turned to investing for their children's education and their own retirement become frightened. Sometimes there appears to be no rhyme or reason to the market, only folly."
Update on 12/12/2008
Updated weekly levels from 360 degree analysis
High
2714 2736.62 2747.93 2759.23 2781.85 2804.47 2815.78 2827.08 2849.7 2872.32 2883.62 2894.93 2917.55 2940.17 2951.47 2962.78 2985.4
Low
2945 2920.46 2908.19 2895.92 2871.38 2846.83 2834.56 2822.29 2797.75 2773.21 2760.94 2748.67 2724.12 2699.58 2687.31 2675.04 2650.5 2625.96 2613.69 2601.42 2576.88 2552.33 2540.06 2527.79 2503.25 2478.71 2466.44 2454.17 2429.62 2405.08 2392.81 2380.54 2356 2331.46 2319.19 2306.92 2282.38 2257.83 2245.56 2233.29 2208.75 2184.21 2171.94 2159.67 2135.12 2110.58 2098.31 2086.04 2061.5
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