WEAKNESS ON WEEKLY CHART:
Both SENSEX and NIFTY has been very violent since last two
weeks
First was the WEEK OF EVENTS
where in there was extreme volatility on BUDGET DAY and in the next as
once it seemed that both indices are getting ready to have a smart rally a
NEGATIVE and UN EXPECTED flow negated one days STRONG positive move.
It has been difficult for traders and difficult to analyse
as well.
For the coming week we will rely completely on LEVELS on
CLOSING BASIS.
For SENSEX the HIGH at 17687 is the most important hurdle as
of now also for any upmove SENSEX will have close above the FALLING TRENDLINE
drawn on SENSEX chart here.
For NIFTY 5385 IS now the most important RESISTANCE level
besides the FALLING TRENDLINE
NIFTY will have to give a STRONG CLOSE above this TRENDLINE
for any possible turnaround in the next week.
On the down side a NIFTY CLOSE below 5177 will open down
side TARGETS of 5079 and 4947.
On the WEEKLY CHART both SENSEX and NIFTY are perhaps moving
in a FALLING CHANNEL and are forming an A-B-C form of a ZIGZAG corrective
pattern
This means that SENSEX and NIFTY should have a SIGNIFICANT
upside from either 50% or 61.8% retracement levels.
For NIFTY these levels are 5070 and 4947 so we will watch
for support coming up from just below 5100 in coming days if NIFTY breaches
5171.
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