Good time to buy

sensex has previously tested its 200 dma which is currently @ 16780 while
the 200 ema @ 17160.

previous chart patterns suggests whenever the fall in sensex is in excess of
10% it takes minimum 2-3 instances at 200 dma to form a bottom.

I think panic bottom has already been found @ 15400 and it would be not be
tested unless we r in extreme grim situation.

the correction which has started from 18900 is a technical correction, in
fact sensex attempted to cross 100 dma @ 18800 but failed to sustain
resulting in testing of 200 dma again @ 16800.

critical levels to look out are 17170 , 16774 on daily charts, 16777, 16220
on weekly charts on down sides.

16220 levels would be the major support level based on moving averages.

the above comments are purely based on moving average theory, which is the
most popular theory , further chart patterns from during JAN2004- JULY 2004
also suggest intermediate bottom @ 16200 below the median trend line, the
same has been posted previously & would be posted with recent developments
by monday.
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Make a habit to book half of yours profit at 1tgt & rest in half prts. at
every consecutive tgt.