India’s Sensex continues to test medium-term support at 31000. Bearish divergence on Twiggs Money Flow indicates medium-term selling pressure. Respect of support would offer a target of 32000*. Completion of a second narrow consolidation, after the first between 29000 and 30000, would signal a strong bull market. Breach of support, however, would warn of a correction to 30000.
* Target: 29000 + ( 29000 – 26000 ) = 32000