TECHNICAL VIEW FOR
SENSEX & NIFTY FOR THE WEEK STARTING FROM 23-01-2012
WHAT HAVE WE
BEEN SAYING SINCE LAST 1-2 MONTHS??
We were the
first to say that from around 4538 we will have a SIGNIFICANT bounce in our
stock markets.
We were clear
in our view that the bounce will come off from complete NON BELIEF.
If someone
noticed the media reports in the Month of December 2011, everyone was
saying that The Indian Market is in
firm BEAR GRIP while we mentioned that 4538 is the TARGET and a strong support
level. NIFTY moved exactly as per our expectation as NIFTY FUTURE touched an
exact level of 4538 and yesterday it touched 5065 which was our third upside
target as well.
ON 11TH
January we posted this chart with our Daily Technical View the comment on the
chart of NIFTY was very categorical which suggested up side targets for NIFTY as
4965 and 5067 on that day NIFTY was at 4860 so we had given a clear direction
which was having an upside of 200 NIFTY POINTS.
Having reached
their respective 61.8% Fibonacci
Retracement levels, both SENSEX and NIFTY had formed a probable reversal
pattern called A DOJI STAR in the Daily Chart and we expect one down side
correction starting any day next week.
SENSEX and
NIFTY both have generated a very good up move and this up move can be FIRST LEG
of a larger up side correction that we have been anticipating for the year
2012.
BUT all depends upon
the upcoming correction if the correction remains slow and SENSEX and NIFTY
complete a strong higher bottom this rally can go much higher.
We believe
that next one or two weeks will decide if we have already hit one significant
bottom or not.
In the next
week we need some confirmation first that this up move has actually ended
because if SENSEX and NIFTY continues their up move NIFTY can still reach
around 5126-5157 and SENSEX can reach around 17003.
The up move
will end if we get a BIG BEAR CANDLE below the STEEP TRENDLINE and if BULLISH
GAPS get filled in.
Even then the
levels around 4873 is going to play a crucial supportive role so there is no
conclusion yet if SENSEX and NIFTY has already hit a MAJOR BOTTOM or not and we
will wait for certain evidence to confirm it.
BSE METAL INDEX
I would like
to re publish one chart of BSE METAL INDEX with a note that in our WEEKLY CHART
BOOK dated 26th December, 2011 as we suggested an up move in BSE
METAL INDEX and in addition to that if one reads our comments on this re
produced chart of BSE METAL INDEX dated 25th NOVEMBER 2011 one would
realize that we have not missed any big move even in this index.
A very smart
1600 point up move in BSE METAL INDEX and this up move was predicted for the
January month in specific well in advance.
BANK NIFTY
BANK NIFTY has
completed one major down move and BANKING STOCKS will lead the new up move
which will be a SIGNIFICANT correction on the upside and has started to unfold.
As on the EOD
charts the recent up move DOES NOT LOOK TO BE CORRECTIVE ANY MORE.
So we strongly
recommend buying BANK STOCKS in any correction that comes up in coming days.
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