TECHNICAL VIEW FOR THE SENSEX AND NIFTY FOR THE WEEK
STARTING FROM 3RD SEPTEMBER 2012:
I had suggested a STRONG TOPPING PATTERN called HEAD &
SHOULDER on monthly charts of SENSEX and NIFTY a few weeks ago
I had clearly pointed out in the article that the process
will take some time and CONFIRMATION of the TOPPING PATTERN will be only below
the NECKLINE BUT i suggested care for longs
Since NIFTY touched 5442 AND SENSEX almost reached 18000 i
said that caution is advised for longs again
And as NIFTY closed below 5378 i repeated and suggested an
end to the last few months up move
As per my understanding of charts the 3000 points up move in
SENSEX from around may 2012 and 600 points rally in NIFTY does look to be only
a BEAR MARKET RALLY
There was no sign of BULL MARKET RALLY at any point of time
despite i was giving NIFTY targets of 5378-5442 on the higher side
This chart of SENSEX was posted in my weekly chart book of 30th
july 2012 and my comments on the chart is categorical
SENSEX HEAD & SHOULDER AS ON 27-07-2012:
I wrote this on 30th JULY 2012
“ This pattern
has the potential to drag SENSEX towards nearly 12000 in the medium term BUT DO
REMEMBER that the pattern gets COMPLETE ONLY ON THE BREAK OF THE NECKLINE.
It is a TOP HEAD & SHOULDER.
Also note that i am not suggesting to go short right now
as this pattern may take a few more months to unfold also this pattern is
developing on MONTHLY CHARTS so we shall have ENOUGH TECHNICAL EVIDENCES on
other LOWER TIMEFRAME CHARTS to TIME the CRASH if this pattern is going to
complete in the near future. “
Looking the EVENING STAR candle pattern as can be seen on
the WEEKLY CHARTS of SENSEX and NIFTY its time to create fresh shorts at weak
up move which should start soon
Decisive break which will confirm an end to the last few
months up move should come up soon
Level wise a close below 5220 for NIFTY and below 17208
should confirm that the rally was a BEAR MARKET rally only
For the week RESISTANCE LEVELS are placed at 5342 -5359 for
NIFTY and at 17600-17712 for SENSEX and if some how both indices can close next
week above these zone we will have to have a closer look
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