Indian Stock Market Technical Analysis: Recommendation for shareholders

Sensex has been on a bouncy ride since last few days. The trend has been volatile with large fluctuations seen in intraday trading. It would make a interesting reading to see he technical charts.

As we see the charts, the last downturn occured during the May June period of this year & the index has been marching upwards since. There has been a recent blip but still the markets are on quite a high. If we see the MACD signal, it is clear that currently it is in SELL mode.

As against that W%R & RSI seem to give mixed signal. They are more of less in HOLD range with indication that buying should be done in selected good scripts.

Our advice to investors is that they should SELL the stocks for which they have good returns & only hold those which have good short term prospects. For the rest of scripts, it would be wise to keep money liquid & wait for the next downturn which should come in near future.