weekly technical view for SENSEX AND NIFTY

WEEKLY  TECHNICAL VIEW FOR THE WEEK STARTING FROM 06-06-2011:

Both SENSEX and NIFTY moved up for the first few days of the week but on Wednesday we suggested that there can be some correction on the down side and the correction started on Friday SENSEX and NIFTY opened up and rallied initially but after touching our “SAR” levels both index fell sharply.

Weekly closing was positive BUT with higher SHADOW which suggested selling from higher levels.

For the next week “UPSIDE possible if correction halts in a day or two at supports and then bounces back, all depends upon next few days move and SPEED of down side correction.

5466/ 5434 and 5387 are levels of support for NIFTY in coming days and a DECISIVE BREAK below 5387 can put an END to all bullish HOPES.

But if NIFTY FINDS SUPPORT around 5436 in next two-three days and bounces back with any CANDLE REVERSAL pattern than again there will be atleast one upside rally “

EARLIER VIEWS ON BROADER MARKET :

We had presented an OPTIONAL view on SENSEX and NIFTY almost a month back in our WEEKLY CHART BOOK, we suggested that there is an out right possibility that the rally in our markets started from END MARCH 2011 can be a first leg of a new BULL TREND

 we suggested that if this possibility is open then SENSEX and NIFTY should not break their respective 78.6% retracement levels on weekly CLOSING basis and infact when we found weakness on daily chart we suggested investors –traders to remain in cash by more then 70% with FIRST downside targets at 17832 and 5340 for SENSEX and NIFTY respectively.

These levels were 78.6% retracement levels and also we pointed out that the IMPORTANT 89 week EMA is also placed around 17800 and 5330 for SENSEX and NIFTY respectively so for a LARGER down fall to open up SENSEX and NIFTY had to give weekly close below these levels

in the last week of may 2011 when our down side targets were met markets bounced back also two weeks back we suggested that STOCHASTIC is in oversold zone on weekly chart which can favour bulls.

In addition to this we suggested a bounce back is possible from 26^th may through our daily technical view and conference call.

 in the past few months starting from October-november 2010 then in January 2011 and last in the early april 2011 advised investors to be in cash by more then 70% and very good stocks like INFOSYS, SBI , BHEL , TATA MOTORS, MAHINDRA AND MAHINDRA, MANY BANKSING stocks have been down sharply from highs.

most of the reality sector stocks most of the small and midcap stocks have been hammered and many have lesser values now then  when they were around at 4800 NIFTY level.