A big day down on the SENSEX last Wednesday has turned the momentum indicators into negative territory. Now, if there is a close below 9390 level then there is a strong possibility of the trend changing from up to down. This would be confirmed as and when the sensex breaches 9160 level. No longs are suggested at the moment. Rather exit longs on every rise and initiate shorts below the given levels above.

RELIANCE has been a big drag on the market besides a large cap like SATYAM going bust. The SATYAM saga has surely raised eyebrows and it would not be secrilegous to doubt the quality of transparency and standards in terms of acoounting. However, it would be unfair to set India aside because whole of the banking and accounting system around the world seems uncontrolled. This is the same system which has pushed the whole world into recession.

There could be more skeletons tumbling out of the cupboard once stringent accounting system is put in place. Watch Out in the times ahead!