WEEKLY CHART BOOK

WEEKLY TECHNICAL VIEW FOR SENSEX & NIFTY :

At times market moves are hard to ACCEPT especially if you have PRE SET OF BELIEFS out of your own prediction.

In our case I had used MULTITIME FRAME CHARTS to try & understand what markets can do

Two weeks back I was of a firm belief that our markets are bound to ATLEAST TEST October 2011 lows

For SENSEX a move up to 15100 and 4538 for NIFTY was almost imminent BUT suddenly there was some good bullish developments on the possible LOWEST TIME FRAMES that I can use as I do END OF DAY analysis while reporting.

4758-4767 ZONE was identified as a support and 16002-15800 for SENSEX and despite EXTREMELY BEARISH SENTIMENT bears could not breach these levels on SECOND ATTEMPT and there I suggested a possible reversal is ALSO POSSIBLE.

And as both indices moved beyond their first RESISTANCE levels without any difficulty I gradually turned bullish for the SHORT TERM then a small help came from the 5/8/13 EMA BAND CROSS OVER which generated a buy on EOD CHARTS.

Last week there was a STRONG BULLISH CANDLE REVERSAL PATTERN and now we are seeing supports working.

Till supports around 4995 and 16485 works we have to be on long side.

As one can see on the CHARTS both SENSEX & NIFTY has taken supports at 200 WEEK SMA & EMA on WEEKLY CHARTS and at the same time both these INDICES are at their respective 200 DAY SMA & EMA

So MARKETS are bullish BUT may be only for the SHORT TERM

I would prefer a STRONG BULLISH CLOSE above 17120 and 5217 for SENSEX and NIFTY and then a small correction to enter long, this would be an ideal bull set up for the intermediate term but AS OF NOW we can not ignore the STRONG RESISTCE ZONE placed at 17120-5217.

So for the NEXT WEEK watch these resistance levels and also watch supports around 5084 and 17485 for NIFTY and SENSEX respectively.

Any TREND REVERSAL initiates from DAILY CHARTS and spreads its wings in to HIGHER TIME FRAME charts

We have seen supports working around 4760 AND resistance levels were ignored and then we had seen a BULLISH PATTERN on WEEKLY CHARTS and now as you can see this SENSEX MONTHLY CHART where there is “PIERCING LINE “ CANDLE REVERSAL PATTERN in progress

The month END is still 7/8 working days away but if this MONTH ends above 17120/5217 for SENSEX & NIFTY respectively but we have a ray of hope building up even on MONTHLY CHARTS.