Wednesday's Outlook
Aug 28 (10:00) -European markets were mixed last night, while the US indices rallied. Asian markets are in the red this morning, with the Hang Seng down sharply and the Nikkei marginally. The global short-term trend is down just now. We can accordingly expect another decline today. [More]

Longer-term: Intermediate downtrend still on

Aug 28 (10:00) -The market is still in an intermediate downtrend. The downtrend started on July 12, and is two weeks old now. The levels to be crossed for a new intermediate uptrend remain 14,746 for the sensex, 4,435 for the Nifty and 5,791 for the CNX Midcap index. These are within reach of a reasonably strong rally.

Most global indices are still in intermediate downtrends, but many of these had moved close to their intermediate uptrend triggers. The Dow is now 2.6% below its uptrend trigger of 11,684.

This intermediate downtrend has cost the sensex 1,444 points which works out to 47% of the 3,066 points gained in the previous uptrend.

A bull market will become a possibility if an uptrend were to develop around these levels, as the sensex would then be making a much higher bottom than the preceding one of 12,514 established on July 16.

A bull market would be confirmed if the sensex closes above its previous intermediate top of 15,580. The equivalent is 4,650 for the nifty, and 6,016 for the CNX Midcap.

There was no change in the major trend of any of the Hotline stocks yesterday.