WEEKLY CHART BOOK

WEEKLY TECHNICAL VIEW FOR SENSEX & NIFTY :

As expected both SENSEX and NIFTY retraced back from their RESPECTIVE resistance zones

For SENSEX it was around 18000 and SENSEX made a high of 17972 while for NIFTY the next target above 5378 was 5442 and NIFTY made a high of 5448

Both indices ended the week with  A PROBABLE reversal pattern called “SHOOTING STAR” and if SENSEX AND NIFTY close the next week with a big down candle there will be an end to the recent up move in our markets

In any case CAUTION was being advised in my last 2-3 DAILY TECH VIEW at these high levels

Reasons for caution for longs are many one of which is the ADX on HIGHER TIMEFRAMES and the PRICE STRUCTURE of indices for the last one year

Another reason was the EARLIER HIGHS around 18000 and 5442

An important reason is STOCHASTICS being overbought on DAILY & WEEKLY CHARTS.

For NIFTY 5378 is the first support and on Friday NIFTY made a low of 5371 but closed at 5386

More important support which can a be a real short term TREND DECIDER level is 5341 for NIFTY and 17622 for SENSEX so if SENSEX & NIFTY closes below these two levels for 2 consecutive days in the coming week the down move initiated last week can be the END of the whole up move of recent few weeks.

BANK NIFTY:

A BREAKDOWN from a small TRIANGLE PATTERN on EOD charts suggests that the RECENT FEW WEEKS up move may have ended in BANK NIFTY

Watch the support TRENDLINE on the chart

If this trendline gets DECISIVELY BROKEN BANK NIFTY will test the MAY 2012 lows one again

tech view 280812:

SENSEX: the EXPECTED down move continues and now reaching one important support level

It will be interesting to watch how SENSEX behaves at support for next two days because STOCHASTIC will be nearing oversold zone very soon on DAILY CHARTS so there can be some pull back efforts again

It is very important that since last Friday i have been warning for such a correction

17622 and 17471 are two critical supports and TREND DECIDER levels so watch for some bounce back from here if not get ready for a steep fall in our markets

NIFTY: there was a sustained move below 5378 so next support is at 5341 and more critical support zone is 5260-5220

There will be some up move from these levels and that up move will be an important one to watch

If these supports does not work we will see a more severe down move very soon

Caution for longs have been very clearly advised

A strong close above 5401 will be positive again if it happens