This will be the last WEEKLY TECHNICAL VIEW for the year 2011 and it is with a sad note for the status of the markets for the year.
It will be a monthly quarterly and also an yearly close at the end of this week.
And on all the above HIGHER TIME FRAME charts it is only BEARS who rules as of now.
All averages are down all indicators are showing weakness to continue just a little positive candle pattern called HAMMER in some good highly traded stocks as on weekly chart suggests that some stocks may have started to attract some long term funds.
For the next week if NIFTY closes above 4840 and if SENSEX closes above 16133 we can have some hope for the early part of 2012.
Our targets of 15154 and 4538 for SENSEX and NIFTY were hit and we have seen a relief rally which as of now seems to be a corrective rally only.
Since we believe that the price zone of 14600-14900 and 4470-4361 for both index has got some very interesting FIBONACCI ratios present we will have a strong rally from these zone but even 4538 and 15154 has got good Fibonacci supports if NIFTY closes above 4840 we may have already been in for a good rally ahead.
Time to be in buy mode for short term is nearby that is our conclusion for the last week of 2011.
A close below 4630-4599 and NIFTY will have target zone of 4538-4361 again.
A LOOK INTO 2012 :
We will come out with a detailed report for 2012 covering a few sectors and individual stocks but at one glance 2012 seems to be a NON EVENTFULL YEAR as far as the long term picture is concerned.
As described in October 2010 and in January 2011 SENSEX has entered a multi year CONSOLIDATION PHASE which could last till 2015 before finally resuming a GREAT BULL RUN TO EVEN REACH A 50K MARK.
The broader range for the year 2012 can be between 13000-17000 and 4200-5000 for SENSEX and NIFTY respectively.
The whole year could have three legs starting with some bullishness we will see one big crack up to around 14600 in the first few months before we set in a STRONG and LARGER corrective inside the BEARISH C WAVE that we are in.
The final leg could again be bearish to end 2012 on a dismal note again.
We advice readers to follow us with our daily/weekly technical views through the year as the charts unfold the future.
We will be surprised if SENSEX/NIFTY can produce a back to back BULL CANDLE after they are about to finish the year 2011 with a big bear candle.
But markets can do anything so we will track them on day to day basis with an assurance not to let our readers miss out any thing big on either side.