MTECHTIPS

MTECHTIPS:-SENSEX

The SENSEX gave a weak opening in early trade on Friday, and the index  dipped sharply intraday to close the day with heavy losses.The index could not hold on to the crucial supports and closed the day with losses.The index intraday is expected to open negative taking cues from the firm Asian markets. After consolidating for over two months, Sensex has broken down from its trading range , breached its 200 DMA at 17035 and closed below 17000. Today Sensex has to cross and hold on to 16910 levels above which levels of 17050- 17250 are probably possible. However if 16900 levels are not crossed and held levels of 16700-16500 cannot be ruled out under the circumstances. The gap down caused due to the island reversal caused 21 trading sessions ago is still not filled which still remains a major issue of concern.