WEEKLY TECHNICAL VIEW

WEEKLY TECHNICAL VIEW OF SENSEX AND NIFTY FOR THE WEEK STARTING FROM 25-10-2011:

Shortened week due to DIWALI holidays and INDECISIVE technical picture in addition to bigger events like EU MEET on greek crisis and RBI meet on Tuesday makes it very difficult to predict the future of our markets for the next week.

Level wise for NIFTY 5011 has become an important trend decider level same level for the SENSEX is 16669.

For more hopeful long side traders 4964 and 16510 are two crucial STOP & REVERSE levels for NIFTY and SENSEX.

IF the on going side ways move between 5160-4964 proves to be a corrective only and NIFTY breaks the barriers at 5177-5196 it will reach 5225 and 5330 for SENSEX an important target is 17800 if it breaks 17200.

First indication of such an upward break will come if on Monday crosses 5106 and stays above it for 10-15 minutes.

The more difficult time for bulls will come whenever NIFTY and SENSEX closes below 4964 and 16510 because after that they will have down side targets of 5625-5538 and 15300-14900 respectively.

There are some good technical evidences like positive divergence in MACD and EMA crossovers but since ADX is still not picking up momentum markets are not moving big in either direction.

If we talk about  a little longer picture a very few stocks are showing some signs of bottoming out still a very large number of stocks which were very active in the last bull run are not showing any symptoms of significant bottoms.

So even if indices are managed to break certain key resistance levels it should not be considered as KEY REVERSAL IN CURRENT TREND.

Although with our sharp and innovative technical tools if find some strength somewhere we will let our readers ride good up moves.

the most crucial resistance zone  17211-1731 and despite a good bull candle in the second last week SENSEX just can not cross these hurdles. bullish supportive buying got generated from around 16515 and from 16669

BUT

if such bullish attempts can not convert in to a crossover of these hurdles eventually bears will again take control.