TECH VIEW

SENSEX: SENSEX made a HIGH of 17138 and crashed from their as you all know I had suggested 17120 as THE LEVEL to watch for SENSEX to enter a BULL ZONE

My preference has been a CLOSE above 17120.

As suggested earlier this little phase of last 12 trading days has been difficult for positional traders but from today onwards we would see a clear TREND in either direction.

Today if SENSEX sustains below 18800 it will reach 16636 and a close below 16636 would be considered as a BREAK DOWN from the range.

NIFTY: future NIFTY again was a leader yesterday as it TOUCHED 5203 which was the first level of resistance zone of 5203-5217.

5093 is the level to watch first and then 5041.

A close below 5041 will be dangerous for BULLS and as shown on the NIFTY CHART the recent corrective phase looks like a DIAMOND CHART PATTERN and a break below 5041 will initiate a fresh down move.

4931 is the 61.8% retracement so that could be the TREND DECIDER level for the month of JULY 2012.

SYSTEM : BETTER IF NIFTY BECOMES MORE VOLATILE

CHART SPEAKS:
NIFTY 5000 CE

AGAIN@RESISTANCE

SENSEX: this has been another good attempt from bulls to CLOSE SENSEX above 17120

If this happens by Friday it will be very good indeed.

There is better thing in yesterdays up move that there was very good participation from most of the leading stocks

SENSEX closed at 17050 which in the middle of my STRONG RESISTANCE ZONE of 16920-17120 as I have been insisting of a weekly close above 17120, it will be crucial if our markets can attain these levels even after a GAP DOWN open today.

A close below 16840 and 16636 today will again put pressure on bulls.

NIFTY: once again initial hurdle at 5133 and 5156 has been crossed but as I have been insisting for a WEEKLY CLOSE above 5217 it will be critical to watch NIFTY CLOSE today

DJIA has been down overnight and a GAP DOWN close will be possible so watch 5100 and 5041 levels for today as support and be careful in longs if NIFTY CLOSES below 5100-5041 today.

Do remember that UNLESS ADX picks up one should not expect big move on either side.

In case of NIFTY closing below 5041 it could become a case where one can short rallies in coming days.

TRADING SYSTEM ON NG

DIRECTIONLESS AGAIN

BOTH SENSEX AND NIFTY did reach their respective targets/resistance and now we are watching a TOUGH FIGHT between bulls and bears AT A CROSS ROAD

at present one can not have a PREDICTION as such but can have LEVELS only to watch for a DIRECTIONAL MOVE

one TECHNICAL reason for undecisive move is ADX moving down.

SENSEX:supports are still intact even after a big down candle on Monday and yesterday SENSEX opened low but recovered in the later half of the day

Levels point of view there is no change in my basic view which is that the short term trend is still up till SENSEX remains above 16544-16494

But better is if SENSEX can regain the lost grounds of MONDAY which again is my old level of 17120

NIFTY: 5133-5217 REMAINS the STRONG RESISTANCE zone for NIFTY and a WEEKLY CLOSE above it would be the best thing to have happened with NIFTY in recent past.

To be able to DIGEST the sell off of Monday NIFTY should remain above 5031 for today and as I had said a CLOSE below 5020-4994 would be the critical signal of the RECENT RALLY to end

A close above 5156/5191 would also be a good sign for today.

@RESISTANCE

SENSEX:16920-17120 was very very clearly described as STRONG RESISTANCE ZONE and my preference was even tough as I had been repeatedly saying that SENSEX has to close a WEEK above 16920-17120 zone for a BUY ON DIP kind of bullish situation.

16544-16494 is the support zone for next few days and if SENSEX closes below this zone in next 1-2 days then it may end the recent up move

SENSEX will have to close above 16944 very quickly for ANY bullish hopes.

NIFTY: the TOUGH ZONE of resistance as REPEATEDLY being described was 5133-5217 and NIFTY made a high of 5191 and bang, there was a huge supply which triggered a big down move for the day

Incidently NIFTY could not cross the 200 day EMA also

5020-4994 is the support zone as of now and a NIFTY close below this in a day or two would put an end to bullish hopes.

I said NIFTY NEED A WEEKLY CLOSE above 5133-5217 AND then a small correction would be good but yesterdays fall is severe enough to end the recent up move unless NIFTY can again capture 5133-5159 levels today.

SYSTEM ON AN EVENT DAY

A FEW SNAPSHOTS FROM TRADING SYSTEM