SENSEX : SENSEX made a low of 18012 a few points away from our target and on EOD chart it made a “DOJI” candle pattern this pattern suggests indecisive ness.
Such confusing status of market is because of support zone as we had discussed earlier the 78.2% retracement is placed around 18000 and the 89 week EMA is also placed around there.
As drawn on SENSEX chart last few days move is developing in to a “FALLING WEDGE” structure which is BULLISH for short term but only if it gets a BREAK OUT and if SENSEX closes this week below 17825 it will be extremely BEARISH.
BUT such structure needs a confirmation by a break out above the trendline on closing basis.
NIFTY :
NIFTY made a low of 5367 where as we had given the first major target of 5340 when NIFTY went below 5792.
On the EOD chart of NIFTY one can see two price structures being developed one is A FALLING CHANNEL and inside the channel there is FALLING WEDGE .
Falling wedge is a BULLISH structure if price breaks out above the channel and also remember that such price structure is developing around 89 week EMA and 78.2% retracement level.
First good sign for NIFTY will be a close above 5432-5460 and then there is A GAP on NIFTY FUTURE intraday chart at 5478 so a strong close above 5460 for spot NIFTY and above 5478 for FUTURE NIFTY will be positive.
Do remember that this week/month closing will play a very VITAL role for our markets move for next few months AND without an INFOSYS ,RELIANCE ,SBI ,BHEL ,TATA STEEL OR a SESA GOA moving up with force we can never EXPECT a bull market.
Such confusing status of market is because of support zone as we had discussed earlier the 78.2% retracement is placed around 18000 and the 89 week EMA is also placed around there.
As drawn on SENSEX chart last few days move is developing in to a “FALLING WEDGE” structure which is BULLISH for short term but only if it gets a BREAK OUT and if SENSEX closes this week below 17825 it will be extremely BEARISH.
BUT such structure needs a confirmation by a break out above the trendline on closing basis.
NIFTY :
NIFTY made a low of 5367 where as we had given the first major target of 5340 when NIFTY went below 5792.
On the EOD chart of NIFTY one can see two price structures being developed one is A FALLING CHANNEL and inside the channel there is FALLING WEDGE .
Falling wedge is a BULLISH structure if price breaks out above the channel and also remember that such price structure is developing around 89 week EMA and 78.2% retracement level.
First good sign for NIFTY will be a close above 5432-5460 and then there is A GAP on NIFTY FUTURE intraday chart at 5478 so a strong close above 5460 for spot NIFTY and above 5478 for FUTURE NIFTY will be positive.
Do remember that this week/month closing will play a very VITAL role for our markets move for next few months AND without an INFOSYS ,RELIANCE ,SBI ,BHEL ,TATA STEEL OR a SESA GOA moving up with force we can never EXPECT a bull market.
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