Monday, January 16, 2012

WEEKLY CHART BOOK


WEEKLY TECHNICAL VIEW FOR SENSEX & NIFTY FOR THE WEEK STARTING FROM 15TH JANUARY 2012:
For the first time in last 8-10 months the BROADER MARKET has started to show some signs of BULL ACTIVITY.
SENSEX & NIFTY are yet to reflect this because there has been a mixed bag inside these two indices.
Both SENSEX & NIFTY has reached 38.2% retracement levels and there are signs of a correction coming up.
There is a clear WEDGE developing as shown on this SENSEX chart and short term future will be decided on a BREAK OF IT ON EITHER SIDE IN THE NEXT FEW DAYS.
Looking at the strength in certain HIGH BETA stocks and even certain sectors like BSE REALITY AND BSE METAL INDEX we repeat that if SENSEX & NIFTY ENTERS a correction from here we will have a great buying opportunity coming up for 2012.
We believe that in 2012 atleast for once SENSEX AND NIFTY WILL BREAK their downward channel on the up side which will be a LARGER B WAVE INSIDE the  current C WAVE.

BSE SENSEX WEDGE :









Stocks like a JSW STEEL  AN AXIS BANK,A TATA STEEL OR A RANBAXY will be giving a great opportunity if SENSEX and NIFTY enters another corrective or down move.
The recent uptrend will continue towards 50% and 61.8% retracement levels if SENSEX closes a day above 16421 and if NIFTY closes a day above 4921 in the next week.
While for the downside correction NIFTY MUST CLOSE BELOW 4782 and SENSEX must close below 15664.
If we get a WEEKLY CLOSE below 4686 and below 15664 for NIFTY & SENSEX respectively than we shall have to wait for buying opportunity at lower levels which could be perhaps below 4538 and below 15135 only.

AN important STRUCTURE DEVELOPMENT is in progress on weekly chart of NIFTY which is A FALLING WEDGE and it now surely seems that one VERY GOOD BOTTOM has either been hit or is very much near by.

We maintain our view that if SENSEX will breach 15135 in near future the price zone of 14900-14600 WILL produce a very significant rally in 2012.




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