WEEKLY CHART BOOK

WEEKLY TECHNICAL VIEW FOR INDIAN MARKETS:

It is indeed a very SMART pull back luckily there was not even a FALSE BREAKDOWN below my support levels

As in my last WEEKLY CHART BOOK I was clearly having a BEARISH MIND SET BUT it was ONLY AND ONLY if NIFTY WAS TO CLOSE BELOW 4803-4760 LEVELS AND SENSEX WAS TO CLOSE BELOW 15809-15840 ZONE OF SUPPORTS.

In that circumstances I feel lucky as not advising my readers to SHORT EVERY RALLY.

In January 2012 I had given an upside target of +2000 points from 9500 levels and +600 points for NIFTY above 5021 and at that point of time my advise was simple and clear BUY ON DIPS

But this time I was shy giving an advise to SHORT EVERY RISE.

Last week on Tuesday it self as I mentioned OVERSOLD STOCHASTIC I suggested that as NIFTY has not broken supports at 4767-4757 levels we may have another rally on cards.

For such an upmove my condition was clear as well that NIFTY & SENSEX will have to cross immediate hurdles BOTH INDICES immediately responded and crossed their nearest RESISTANCE LEVELS and it was indeed a VERY GOOD week indeed.

SENSEX and NIFTY may have initiated a STRONG BULL MOVE which can be called as an intermediate up move BUT WE MUST SEEA “ HIGHER TOP- HIGHER BOTTOM “ formation on EOD CHARTS.

And after we see a STRONG HIGHER BOTTOM SENSEX must cross 17003 in a whisker and NIFTY must close strong above 5133-5217 levels.

As we look at the NIFTY CHART we can easily find out that the ZONE OF 5133-5217 WAS A STRONG SUPPORT AREA which was broken in MAY 2012 so these levels will work as STRONG RESISTANCE LEVELS