Mastering Stochcharts: WEEKLY CHART BOOK : TECHNICAL VIEW FOR NIFTY & BANKNIFTY

TECHNICAL VIEW For NIFTY And BANKNIFTY For The Week 05102015:

NIFTY:

Since We Have A Month Ended Just A Day Before Last Trading Day Let Us Have A Look At MONTHLY CHART Of NIFTY To Have An Idea Of Probable Nifty Move In Coming Days/Weeks

CANDLE STICK Point Of View Last Month We Have A DOJI STAR PATTERN Which Suggests The Month Ended With Strong Buying Support Around 7540-7700 Levels BUT This Kind Of Pattern Can Prove To Be A Reversal Pattern IF WE HAVE A FOLLOW UP BULLISH CANDLE For NEXT Month

For This To Happen NIFTY Has To Close OCTOBER Month Above 8315 If Such A Positive Close To Come END NOVEMBER Then We Should Not Have A Monthly Close Of OCTOBER Below 7700

NIFTY MONTHLY CHART :

The WEEKLY Picture Combined With HOURLY Chart :

There Is Neither A Great Bullish Follow Up On Weekly Charts To CONFIRM We Have A Medium Term Bottom In Place At 7539 Nor Is The Weekly Close Suggests Any Immediate Sharp Sell Off

Weekly Charts Do Confirm One Thing And That The NIFTY Now Has Some Strong Supports At 7723-7691 Zone

So An EOD Close Above 8055 On Any Day Next Week And We May See NIFTY Moving Towards The 38.2% 50% Retracement Levels (8130 & 8318 Respectively) And Towards The Big Bearish Gap Around 8300 And Once The GAP Is Closed NIFTY Can Even Move Forward To Meet The RESISTANCE Line Of The BROADENING PRICE STRUCTURE

All Levels /Price Zones Are Shown On This Weekly Chart:

When I Have A Closer Look At The Price Action Since The Bottom @7539 On Hourly Charts I Feel We Have Two Possibilities For Coming Few Weeks Price Movement

1 A TRIANGLE

2 A Straight Away BREAK OUT With Targets Of Up To 8318

In Case Of A Triangle Possibility I Think NIFTY Has One More DOWN LEG To Finish The FIVE LEGs In The Form Shown On This Chart As ABCD-E

Two Things One Must Understand

One Is That TRIANGLEs Can Be A CONTINUOUS PATTERN OR Can Also Be A REVERSAL PATTERN So If Actually It Turns Out To Be A TRIANGLE We Can Decide Further Move Only After The LAST ''E '' Leg Completes Itself

Second Is That A Trader Must Wait For The ACTUAL BREAK OUT Of The TRIANGLE To Decide The TREND

NIFTY HOURLY CHART :

As On The EOD CHART Of NIFTY It Is STILL Bullish As Long As It Remains Above 7900 And October 1St Move Can Just Be A Small Pause

So For The BULLISH OPTION A NIFTY Close Above 8092 Will Be A Very Good Confirmation Which Will Also Be A CLOSE Above The FALLING Trend Line Resistance

TECHNICAL VIEW FOR BANKNIFTY :

As One Can See This WEEKLY CHART Of BANKNIFTY It Is Clearly Evident That BANKNIFTY Has Been Moving In A Falling Channel Which Is BULLISH

For The Next Week 17452 And 17660 Are Two MOST IMPORTANT Levels To Watch For Further Up Side Potential

While Extreme Caution Is Advised If BANKNIFTY Closes A Day Below 16648

For The Last Week Banks Like SBI /AXIS/ICICI Seems To Have Lost The Short Term Momentum While Banks Like INDUSIND /HDFCBANK Seems To Have Gained Further Strength

So There Are Confusing Signals From Different Bank Charts

WEEKLY CHART Of BANKNIFTY :