IMPORTANT TARGETS REACHED , NOW WHAT ??

TECHNICAL VIEW FOR SENSEX & NIFTY FOR THE WEEK STARTING FROM 21-08-2011

Finally last Day of the Week gone by was the Day on which both SENSEX and NIFTY reached our MOST IMPORTANT downside targets of 16200 and 4848.

We lately added 15990 and 4787 as our second targets and SENSEX made a low of 15987 and NIFTY made a low of 4796.

This major and very severe down move was very much anticipated when the LAST LEG was started on 26^th July 2011 and in less than a Month’s time SENSEX came down from 18481 to 15987 and NIFTY witnessed a big crash from 5575 to 4796.

Before this big crash came we were firm in our opinion that the then ongoing rally was CORRECTIVE in nature and we had advocated 18323 and 5496 as MAJOR TREND DECIDER LEVELS for SENSEX and NIFTY respectively.

TARGETS REACHED, NOW WHAT ?

This would be an obvious question every one may be asking at this stage.

Targets were supports too so we can expect some sort of upside action BUT it would never be prudent and advisable to try and catch bottom because the last leg of crash can just be FIRST LEG of larger down side move yet to follow.

Still we can say one thing that the zone of 15600-15990 for SENSEX and 4538-4787 has plenty of supports which can produce upside rally but at this juncture such rallies will be only CORRECTIVE in nature and we will try and catch such upside rallies with buying calls in stronger stocks which can give some good returns.

We believe that by the end of next Week, we will have a little clearer technical picture of any possibility of an upside rally.