<<Aiii>> Sensex, Nifty charts: bulls struggling against persistent bears

Not much has changed on the weekly closing chart pattern of the BSE
Sensex index, other than the fact that the index has once again
dropped below the 50 week and 20 week EMAs. That has prevented the 20
week EMA from crossing above the 50 week EMA. The index is technically
back in a bear market.

Though the Sensex is drifting downwards, it has remained above the
blue down trend line – keeping bullish hopes alive. Despite all the
negative sentiment due to constant supply of bad news – whether it be
Eurozone debt problems, high oil prices, falling value of the Rupee,
ballooning deficits, policy inaction, scams, growth slow down – the
index has not crashed. That doesn't mean it won't. A fall below the
blue down trend line will extinguish any bullish hopes.

It was FII buying that pulled the Sensex out of its prolonged down
trend. Of late, the FIIs have turned net sellers – thanks to the
uncertainty caused by the GAAR provisions. The government has created
unnecessarily complicated procedures for foreigners to invest in
India. No wonder they try to exploit loopholes to their benefit. FII
and FDI investments should be welcomed with open arms by a government
reeling under a current account deficit. Complicated procedures keep
out genuine investors. 'Hawala' transactions are not affected. How
else will politicians become rich overnight?

Read more at:

http://tinyurl.com/mobugobu

--
Independent Investor Handbook
http://tinyurl.com/3octm2r

Ultimate Technical Analysis Handbook
http://tinyurl.com/yej8kem

How to Use Bar Patterns to Spot Trade Setups
http://tinyurl.com/yhszv6t

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