The BSE Sensex found medium-term support at 16000/15800 but reversal of 13-week Twiggs Money Flow below zero warns of further selling pressure. Expect another test of primary support at 15000/15200. Failure would offer a target of 12000*.
* Target calculation: 15 – ( 18 − 15 ) = 12
With almost half of foreign bank funding sourced from Europe, India is experiencing significant tightening of external finance and hence domestic investment.
Singapore’s Straits Times Index is testing medium-term support at 2750. Failure would test primary support at 2600. Reversal of 63-day Twiggs Momentum below zero warns of a strong primary down-trend. Recovery above 2900 is unlikely but would indicate continuation of the primary up-trend.
* Target calculation: 2600 – ( 2900 − 2600 ) = 2300