WEEKLY TECHNI VIEW

General technical review of what happened last week:

The bearishness continued till the last day of the week.

We suggested in our technical view for the last week on 07/02/2011 and during the week through our daily technical view that there is a chance of a bounce back from supports around 17625-17065 for sensex and from 5212-5169 around for nifty and as shown on charts presented with our daily technical view these area was multiple support zone one being the 89 week ema and the other lower end of the year long channel.

And this is exactly how the supports worked on Friday.

How will be the week ahead ?

Sensex:

Although there is no significant candle pattern on weekly chart as on last week which can suddenly reverse the ongoing crash we feel that sensex has hit a short term bottom just as a halt to the huge crash that we have seen recently.

Sensex need to close above 18038 to extend the corrective rally further upto 18600+ in a few weeks time.

A few clarifications, one is that we FIRMLY believe that the supposed rally will be corrective in nature only and second is that the rally will unfold in three waves two up and one down and very highly bitten down create short positions in sectors which looks to start fresh breakdown like metals and few pharma stocks

Nifty :

For nifty it needs to close above 5339-5369 for confirmation of a short term bottom.

And as explained on the charts here it looks like a falling wedge structure on nifty chart and it has upside targets of around 5564-5625 in a few weeks time.