The Sensex rallied Monday but on light volume. The sharp fall on 21-day Twiggs Money Flow below zero warns of strong medium-term selling pressure and support at 16000 is not expected to hold.
* Target calculation: 16500 – ( 17500 – 16500 ) = 15500
Monday’s long tail on the Straits Times Index also indicates short-term buying support. The sharp fall on 21-day Twiggs Momentum indicates a strong down-trend and support at 2700 is expected to fail.
* Target calculation: 2800 – ( 3000 – 2800 ) = 2600