The India story remains the same. Both indexes are defined by the January 2008 pile driver low. The sudden retreat in the markets set the bedrock foundation for future falls. Both of the India indexes, the Nifty 50, and the SENSEX have reached the targets set by these pile driver lows. These are generally minimum targets and the SENSEX has dropped down to 14,600 before finding support.

Both indexes are dominated by a downtrend line. This has acted as a resistance level. The market rises to this resistance level and then reacts away, continuing the downtrend. The strength of the downtrend is confirmed with the Guppy Multiple Moving Averages (GMMA). The long term group is widely separated. Compression in the averages does not develop in response to the most recent rallies. This indicates that investors are still sellers. They are selling into the rally.

In this situation traders look for the historical support levels. As each rally fails, the market tests historical support. The SENSEX has support at 15,800, again at 14,600 and ultimately at 14,000.

The lower dip below the base of the pile driver pattern suggests the SENSEX can test support at 14,000. This may be a brief test as a final desperation shakeout of the market. 

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