WEEKLY CHART BOOK

A Possible Big TREND REVERSAL ?

My Technical View For The Week 08032016:

NIFTY:

A Few Notes First From My Earlier Technical Views:

In My Weekly Chart Book On 11th Jan I Said This

'' After May Be A Minor Support Around 7550-7500 We Will See New Lows And First Probable Support/Target Zone Is 7422 Then 7330-7280 And Finally 7141-7118

But Once FLOOD Gates Open Up PANIC SELLING May Happen And Further New Lows Can Be Possible But Not Without Rallies In Between

We Are In 45TH Week Since NIFTY Made Its TOP In MARCH 2015 While In 50th WEEK Since BANK NIFTY Made Its TOP In 2015

55 Is A FIBONACCI Number So  We Will Have A Significant Bottom Around 12th Feb Or Around 19th March 2016''

In Nearly 8 Weeks Since We Witnessed What Happens When Flood Gates Open Up Once NIFTY Breached 7118 And NIFTY Made A Very Important CLOSING LOW At 6980 As Against Its INTRA DAY Low Of 6869 Exactly On 12Th February As Anticipated On 11th January.

Short Term Picture Of NIFTY :

I Wrote Just A Few Days Prior To Budget That When Immediate Resistance Levels Can Not Stop The Up Move It Will Be The First Sign Of A New Directional Move

As NIFTY Made A PANIC LOW At 6825 On The Budget Day And 7230 Which Was First Strong Hurdle Could Not Stop NIFTY To Move Up It Was Clear That We Are In For  Some Thing Else Then A Mere Corrective Post Budget Rally

I Had Given NIFTY Targets Of 7356-7396-7532 With A Clear Suggestion To Buy On Dips

SGX NIFTY Has Made A High Of 7535 Today So With Such A STRONG Short Term Up Move A Small Correction Should Be Expected Soon And It Will Be A Welcome Correction

There Are Bullish Gaps Which Should Support And Such A Correction Should End Above 7230

We May See Some Range Bound Move Before NIFTY Finally Crosses The Major Hurdle Around 7550 And Should Reach 7709-7726 Once Above 7550

Medium Term :

Since The Very Recent Up Move Seems To Be A Possible New Bull Move A Very Important Question Is That At Which Price Point The Up Move Can Pause And What Can Be Next Targets

If The Whole Down Move Initiated From 9119 Has Indeed Ended At 6825 The First Minimum Target Can Easily Be 7698

Next Would Be 7968

In This Case Too Any Corrective Down Move From Around 7550 Should Be Used To Enter Long

EOD NIFTY CHART:

If The Down Move Which Started From 23rd July 2015 At 8654 Has Ended At 7825 We Can Have An Upside Targets Of 7521-7736-7952

NIFTY EOD 2:

So In Both These Cases NIFTY Should Reach Around 7730 First And 7950 Next

This Is Possible Even If The Recent Up Move Proves To Be Just A Sharp Bear Market Rally

On Weekly Chart NIFTY Has Made A Variant Of MORNING STAR Candle Reversal Pattern Which Too Suggests Every Dip Should Be Bought In

BULLISH GAP At 7406-7380 Is Support And Next Big Support Is Another Gap At 7308-7222

If NIFTY CLOSEs Below 7222 Any Day Bullish Assumptions May Go Wrong But At This Juncture This Seems EXTREMELY DIFFICULT

WEEKLY CHART :

Also Note How NIFTY Has Took Support At The Long Term Trend line And Also At The LOWER END Of The Broadening Price Structure