Aug 302010
 

I did mention in my friday's update that a close below 5452 would be a bearish signal for the Indian market. Besides an engulfing bearish candle pattern on the Nifty,  one other key index in this bull run,  the auto index has also formed a bearish engulfing candle on its price chart.

BSE Auto Index - weekly chart

In March 09 when the broad markets were trying to form a bottom, this sector was already on its first leg of the rally. As can be seen from the chart above, besides the candle pattern, the advance looks like a completed 5 wave advance indicating a possible exhaustion.

Looking at the chart of Tata Motors gives a similar picture. Further negatives likely for Tata Motors if the stock starts trading below the previous week's low of 983.

Tata Motors - weekly chart

 Posted by at 2:25 am

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