INDIA BOMBAY SE SENSEX INDEX & USD/INR

India’s Sensex Index might be forming a major top reversal (Head & Shoulder Top) in the past two years. The length of the distribution period makes this pattern significant. 3 important technical levels showing strong resistance at 18,000 levels. These are; 200 day moving average, horizontal resistance (green line) and the downtrend channel. H&S pattern will be confirmed if the index breaks down the support at 15,700. RSI failing to move above 50 levels while the price found resistance at the 200 day moving average increased the possibility of a larger scale correction. Overall bearish outlook…

Weak Indian Rupee versus US Dollar does not bode well for the equities. INR is targeting 52 levels.