WEEKLY TECH VIEW

Many a times a picture can tell a story, on 8^th of September we presented this SENSEX chart with our daily technical view, one can clearly see in the UPDATED chart of SENSEX since than that till 16^th of September SENSEX has followed our projection with precision

For the further upmove to continue SENSEX need to close above 17209 and 17314.

But one thing is clear that there was some very good trading opportunity on both sides for short term trader if this chart was observed with interest.

Here is the SENSEX chart after our projection of two side moves

Looking at this weekly chart one can see that there is not much strength in last two weeks movement after a strong bounce back came in the first week of September 2011.

A strong weekly close above 17314 can have turn intermediate term trend from down to up.

But a daily close below 16766 and a weekly close below 16374 will take SENSEX TO TEST ITS AUGUST LOWS AGAIN.

For NIFTY the corresponding levels are 5030 and 4911.

A weekly close below 4911 will take NIFTY to test 4720 again and to turn the intermediate trend from down to up NIFTY need to produce a weekly close above 5177 but I would prefer three CONSECUTIVE close above 5177.

Even after SENSEX and NIFTY has moved as per our projection there is still no clear indication of where markets are headed for medium term.

On the QUARTERLY chart  the down trend seems to be intact unless there is a remarkable recovery in last 12 days of the current September quarter, and a good recovery will come only if NIFTY and SENSEX close a week above 5177 and 17314 respectively.