As I said in my last BSE chart update, BSE is coming down and has already corrected 200 points in 2 days. Since past few sessions movement of stock markets in India has been dependent upon world market but BSE has broken its trend line as given in the chart below and a downward movement seems more like a reality now. Today BSE tested 18,040 mark. Below this level there is very less support until 17,840 and 17,700. I see another 200 point correction before the path of the BSE could be decided. Global markets also seem to be weakening with weak recovery prospects. This may turn up into a big correction if sentiments break down too much in one or two sessions. Again saying, I see Indian and China economy being less effected by poor US results because investors are looking to invest in high return markets. But be aware of big movements in world market.
