“MARKET IS SUPREME AND IT CAN GO IN WHATEVER DIRECTION IT
WANTS TO GO “ this is an universal truth
Another TRUTH is that in general market is unpredictable BUT
to identify a DIRECTION we have to FOLLOW IT
These are hard earned lessons in my journey of learning
technical since 1996 and I am trying to put my better efforts in SIMPLY
FOLLOWING MARKETS without any arguments during the course I am trying to
identify PROBABLE supports and RESISTANCE LEVELS hoping that market will honour
them
Success is seen because we use MULTIPLE TOOLS at a time to
identify turning points.
Like during last week we used 38.2% FIBONACCI LEVEL and
13WEEK EMA VALUE as support for SENSEX and NIFTY and we used a STOCHASTIC
ENTERING OVERSOLD ZONE as a possible reason for SENSEX and NIFTY to bounce back
Another TECHNICAL TOOL used to have a support was AN EARLIER
HIGH for SENSEX we suggested 17003 as a good support and it made a low of 17008
and bounced back
Have a look at this SENSEX WEEKLY CHART
For NEXT FEW WEEKS 17003 is a now a NEW PIVOT SUPPORT for
SENSEX and 5171 will be a new PIVOT SUPPORT LEVEL for NIFTY
But we have a better support TRENDLINE in place on WEEKLY
CHART OF NIFTY
To protect our long position this TRENDLINE should be used
as a STOP in the future and a WEEKLY CLOSE below this TRENDLINE can cause some
panic in markets in the future.
We had already given upside TARGETS OF up to 5455 for NIFTY
and for SENSEX this target is 17943 and upmove will be considered as corrective
TILL THESE LEVELS but IF SENSEX CLOSES ANY WEEK ABOVE 18003 AND IF NIFTY CLOSES
A WEEK ABOVE 5459 both index can again reach upto 5649 and 18523 again
The TECHNICAL REASON for this higher side projection is the
STOCHASTIC ON WEEKLY CHART
NEXT WEEK will be very eventful week so one must watch what
NIFTY DOES AROUND 5455 AND WHAT SENSEX DOES AROUND 17943 a STRONG MOVE beyond
these levels can trigger further upside but a SHARP DOWN SIDE REACTION from
these TARGET/RESISTANCE LEVELS can hurt the positive TECHNICAL PICTURE AS WELL.
BANK NIFTY :
AFTER a BREAKDOWN off the INTRADAY TRIANGLE BANK NIFTY went
to the support of 10100 and got a strong bounce back
For the NEXT WEEK if BANK NIFTY can move strong above
10732-10852 it can reach new recent high especially a CLOSE above 10852 will be
EXTREMELY POSITIVE for BANKING STOCKS ONCE AGAIN.
PROTECTIVE STOP FOR THE NEXT FEW WEEKS WILL BE THE TRENDLINE
DRAWN ON BANK NIFTY CHART.
NEW UPSIDE TARGETS IN THE ZONE OF 12030-12136 WILL BE
POSSIBLE IF BANK NIFTY can close a WEEK above 10852 and then if crosses 11226
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