TECHNICAL VIEW for SENSEX & NIFTY for the week starting from 28th MAY 2012:
Last week both the indices formed a candle pattern which is called a LONG LEGGED DOJI now this pattern actually suggests INDECISIVENESS of the market TREND but since it has come up after a significant down side during last few weeks and also it has formed after a HAMMER in the previous week we can say that BULLS are trying desperately to hold the ground of supports for SENSEX and NIFTY.
4803 AND 16002 has been suggested as STRONG SUPPORTS for NIFTY and SENSEX and we have been advocating about a possible corrective rally from these levels and we are already in a corrective rally
Such a corrective rally can become a NEW BULL RALLY but I am very watchful to let readers know if there is such a STRENGTH in any rally to become a BULL RALLY.
Till now a SENSEX move up to 16671 and a NIFTY move up to 5016 will be termed as a CORRECTIVE RALLY ONLY
But it will be crucial to watch how SENSEX and NIFTY reaches these levels if they do
If they form a STRONG BIG BULL CANDLE at the end of the next week to CLOSE above these level there can be more follow up strength we will see
If they reach these levels and retrace back from those highs significantly to end the week with HIGHER SHADOW we will see a SIGNIFICANT DOWN SIDE to open up.
For the week watch 4830-4803 NIFTY LEVELS as if NIFTY closes below these two levels all BULLISH HOPES will get vanished.
For the upside a NIFTY CLOSE ABOVE 4956 will take it up to 5016 first.
Very strong bullish ness can be EXPECTED only if NIFTY manages to close above 5200 as shown on NIFTY CHART in coming weeks.