Here is a follow up chart to the 5 min chart I had posted intra day.Price and time cycle bottoms are seen close to the current levels of 7912 and 7870. Since there are calculation imperfections and charting imperfections, let us take the price band of 7870 -7912 as important for a temporary bottoming out zone.Remember this is a 5 min chart. Larger time zones will give us far clearer cycle pictures. We will see them over the weekend.We should wait to see if prices recover from here. I have taken the closing prices to avoid intra day spikes.
However,there are three important risk factors emerging.
1. Astro picture is getting murkier.Negative factors are increasing.
2.FII Participation has been considerably reduced.
3. US markets are showing internal weaknesses.Daily lows have crossed the daily highs for a significant number of days.
In this back ground, today`s trading will assume significance, because this is the first day of a new settlement.If 7870 is broken, then larger time cycles are taking hold.Please see the momentum charts I had posted some days before.