WEEKLY CHART BOOK

WEEKLY TECHNICAL VIEW FOR SENSEX AND NIFTY :

A GOOD WEEKLY CLOSE but at RESISTANCE

This very short sentence describes the week gone by for the next few weeks one should watch the two LINES drawn on SENSEX chart

We are in a NON TRENDING environment and a clear TREND will emerge on the upside SENSEX can breach 2012 highs in this up move only.

Overall the PRICE STRUCTURE of the whole of 2012 looks to be of a corrective nature and AT THIS POINT OF TIME a big down move seems imminent

Offcourse i will here try and find out if i can see any STRENGTH ON THE UPSIDE which may favour BULLS

After all markets are supreme and i HAVE to follow it.

As was described in my last WEEKLY CHART BOOK very LOW VALUES of ADX on all timeframes shows that there should not be a big move on either side coming up very soon

But if 2012 HIGHS can not be crossed very soon then the PRICE STRUCTURE will prove a DISTRIBUTION PHASE only.

There is a probability that the SENSEX and NIFTY are developing a kind of BASE FORMATION around 80% retracement levels and the process of base building can still go on for a few months BUT even that case will be NEGATED once SENSEX breaches 15700 and once NIFTY breaches 4750 .

Two stock charts do worry me a lot.

SBI

LARSEN

Both SBI AND LARSEN are very critical stocks for Indian markets and WEAKNESS on their charts is nothing good for the short/medium term future of SENSEX and NIFTY.

As per my report “SHIFT OF FOCUS” we have some new leaders as far as price movement is concerned as some stocks from PHARMA AND FMCG SECTORS are still in a big uptrend but THESE STOCKS can not save SENSEX and NIFTY forever IF stocks like LARSEN / SBI are weak.

A close above 5385 for NIFTY in this week for TWO DAYS and above 17744 for SENSEX can take them even further up to 5442 and 17950 levels.

It will be interesting watch how the SUPPORT ZONE of around 5267-5246 works for NIFTY if NIFTY reaches there during the coming week.