WEEKLY CHART BOOK

TECHNICAL VIEW FOR THE NEXT WEEK STARTING FROM 9^TH JULY 2012:

I wrote this in my WEEKLY CHART BOOK last week

“  So now onwards it will be A BUY ON DIPS as one by one all TIMEFRAME CHARTS are turning up.

16800-16653 for SENSEX and 5093-5041 for NIFTY are our new STOP & REVERSE on closing basis.

Here is a CHART of NIFTY which was posted in one of my earlier TECH VIEW just a few days back where I had given NIFTY TARGETS of up to 5442 if 5020 is held “

So it was A BUY ON DIPS for the whole last week and everytime NIFTY CORRECTED there was some buying interest coming up

BUT there was not a big positive closing at the end of the last week and as we observe the NIFTY & SENSEX moves last few days we are back in a VERY SMALL RANGE back again

The PRICE STRUCTURE is a RUNNING STRUCTURE AND again this kind of a STRUCTURE can and will produce a BIG CANDLE again early next week on EITHER SIDE.

LEVELS to watch for such an anticipated BIG DAY ahead :

If NIFTY crosses 5339 it will soon touch 5378 and there will be a blast above 5378 for SENSEX if it trades above 17570 it will move to 17687 and bulls will be in full control if SENSEX can cross 17687

On the DOWN SIDE if NIFTY breaches 5263 i expect a big move can take NIFTY quickly up to 5194 for SENSEX EXPECT 17131 IF IT TRADES below 17363.

The above levels can be for the next few days but the TREND DECIDER LEVELS are 5095 and 16815 on the down side.

 The bias remains on the up side

For SENSEX TARGETS UPTO 19805 are possible even if the whole phase from OCTOBER 2011 is corrective in nature

For NIFTY the first TARGET ZONE is 5419-5499 next will be 5640 but a move up to 5900 is also possible.

So ideally we would see some sort of SMALL down side move only to be bought aggressively.

FOR THE DAY :

SENSEX:SENSEX continues to be in a very small range

The price structure of last few days again signals towards a BIG CANDLE very soon on either side

For day traders low of 17423 and 17363 are supports and if SENSEX moves below these levels it will be first sign of weakness

Overbought STOCHASTICS on both DAILY & WEEKLY CHARTS is a cause of concern and buyers must wait for this indicator to come down to enter longs.

17667 is the up side RESISTANCE as of now.

NIFTY: it was BUY ON DIPS alright but neither NIFTY dipped much nor it bounced much from the lows that shows how tight the RANGE for the recent few days has been for NIFTY.

5287 and 5263 are two levels to watch as support and SHORT TERM TREND DECIDER levels

5378 is the next immediate RESISTANCE to watch and i presume we will have a BIG CANDLE on either side very soon.

Day traders should not remain long below 5263 and positional traders should liquidate longs below 5263 and must wait for the STOCHASTICS to come in to oversold zone.