WEEKLY ANALYSIS FOR WEEK ENDING 17TH JAN 2014

TECHNICALLY  THE MARKETS LOOK HIGHLY VULNERABLE FOR A FALL & HELL WILL LET LOSE SHOULD SPOT NIFTY BREACH & MORE IMPORTANTLY CLOSES BELOW 18TH  DECEMBER LOW OF 6130. THE WEEKLY BEARISH ENGULFING FORMED FOR THE WEEK ENDING 3 JANUARY COUPLED WITH THE 5 IN 1 OUT SIDE CANDLE SETUP FORMED ON FRIDAY 10TH  JANUARY WITH  ITS MOTHER CANDLE MAKING A HIGH OF 6239 & A LOW OF 6139 HAS KEPT THE REMAINING 5 PREVIOUS DAILY CANDLES BETWEEN 3RD  JANUARY TO 9TH  JANUARY WITHIN  WOMB OF THE MOTHER CANDLE OF FRIDAY 10TH JANUARY. THE 7TH  NRB DOJI CANDLE OF 8TH  JANUARY WITH ITS LOW AT 6160 SPOT & HIGH AT 6192 WILL PLAY A VERY CRITICAL ROLE IN DECIDING THE FATE OF SPOT NIFTY DURING THE COMING FEW SESSIONS .

A DAILY CLOSE BELOW THE LOW OF THIS DEADLY 7TH  NRB DOJI AT 6160 SPOT WILL SKIP THE CRITICAL LOW OF 6130  & WILL SEE SPOT NIFTY CRASHING FOR MUCH LOWER LEVELS & A DAILY CLOSE ABOVE THE SAME 7TH  NRB DOJI'S HIGH AT 6192 SPOT WILL SEE SPOT NIFY SHOOTING UP LIKE A TRACER BULLET TOWARDS MUCH HIGHER LEVELS. THE WAY NIFTY FELL ON FRIDAY AFTER MAKING A HIGH OF 6239 TO CLOSE IN THE FORM OF A DOJI BELOW THE DAILY PIVOT CLEARLY INDICATES THAT  MOST LIKELY NIFTY IS SLATED FOR A DOWNWARD SLIDE FOR THE NEXT FEW DAYS TO THREATEN THE DOUBLE BOTTOM LOWS OF 5972 MADE ON 13TH & 22TH  NOVEMBER.

NOW THE SWING SHORTERS FROM HIGHER LEVELS WILL TRAIL THEIR STOP LOSSES TO FRIDAY'S 5 IN 1 OUTSIDE CANDLE SETUP HIGH OF 6239 SPOT & RIDE THE DOWN MOVE. .A DECISIVE BREACH OF 6239 ON ANY DAY WILL TRIGGER MASSIVE SHORT COVERING TO PROPEL SPOT NIFTY TOWARDS 6336 TO ENLIGHTEN THE BULLISH HOPE FOR  RESUMPTION OF THE UP MOVE OR ELSE THE OPERATORS BIG PLOT OF  PULLING NIFTY DOWN SO AS TO GENERATE SOME BIG UPSIDE  SPACE  SO THAT THE COMING ELECTION RESULTS WILL BE ABLE TO FULFILL  THE BLANK SPACE TOWARDS NEW LIFE TIME HIGHS.

IN CASE NIFTY DOES NOT OPEN WITH A GAP DOWN OR A DECEPTIVE GAP UP, THEN EXPECT  INITIAL SUPPORT FOR SPOT NIFTY TO COME AROUND 6161 TO 6151. EVEN SPOT NIFTY MAY BE PULLED DOWN TO RETEST OR EVEN BREACH FRIDAY’S LOWS OF

WEEKLY ANALYSIS FOR WEEK ENDING 10TH JAN 2014

THE NEW SERIES AFTER THE EXPIRY OF DECEMBER SERIES HAS NOT AT ALL GONE WELL  FOR THE INDIAN MARKETS. OTHER THAN A MINOR BLIP TO TEST THE 8TH JANUARY 2008 HIGH & THE PREVIOUS BULL MARKET HIGH OF 6357 ON 2ND JANUARY 2014 BY REACHING AN INTRADAY HIGH OF 6358, NIFTY IS FALLING CONTINUOUSLY AFTER MAKING A HIGH ON 3O DECEMBER AT 6344. A BIGGER FALL COULD HAVE BEEN EXPECTED DURING THE LAST WEEK IF IT WAS NOT THE SUPPORT FROM THE 50 DAY EMA AROUND 6171 THAT NIFTY TOOK ON FRIDAY AT THE DAY’S LOWS. THIS 50 DAY EMA SUPPORT MAY GIVE A LITTLE MORE OF  SPRING ACTION TO NIFTY SO THAT  IT CAN MOVE UP TO TEST THE 34 DAY EMA AROUND 6262 BEFORE FALLING AGAIN TO BREACH LAST WEEK’S LOWS OF 6171 TOWARDS  MUCH LOWER LEVELS AS INDICATED IN THE DAILY CHART ABOVE.

THE WEEKLY CHARTS LOOK DEVASTATING AFTER THE FORMATION OF A WEEKLY BEARISH ENGULFING CANDLE ON FRIDAY 3RD  JANUARY. THE WEEKLY HIGH FOR THE WEEKENDING 13TH DECEMBER 2013 WAS A NEW LIFE TIME HIGH AT 6415 MUCH ABOVE ITS EARLIER WEEKLY HIGH OF 6343 REACHED ON 8TH  NOVEMBER 2013. HOWEVER THE WEEKLY & THE NEW LIFE TIME HIGH AT 6415 HAS GENERATED MANY NEGATIVE DIVERGENCES IN THE WEEKLY INDICATORS LIKE WEEKLY STOCH, RSI, CCI & MACD HISTOGRAM. SO, THE BULLISH CASCADING EFFECT OF THE WEEKLY EMAs OF 5,8,13,21,34, 50, 89 & 200 STAYING ONE ABOVE THE OTHER TOGETHER WITH THE WEEKLY PRICE LEVELS ABOVE EACH OF THESE, MAY GRADUALLY LOSE THEIR BULLISH SIGNIFICANCE DUE TO THE NEGATIVE DIVERGENCE IN THE WEEKLY CHARTS.

THE BEARS HAVE FIRED THEIR FIRST SHOT BY PULLING NIFTY DOWN TO HAVE A WEEKLY CLOSE BELOW THE 5 WEEK EMA IN THE FORM OF A WEEKLY BEARISH ENGULFING CANDLE. AS OF FRIDAY’S WEEKLY CLOSING, THE  PRICE ACTION AND THE  NEGATIVE INDICATORS TURN THE BALANCE IN FAVOR OF THE BEARS & THE WEEKLY BEARISH ENGULFING CANDLE OF WEEKENDING 3RD JAN COUPLED WITH THE OVERBOUGHT CONDITION & THE  NEGATIVE  DIVERGENCES FROM THE IMPORTANT WEEKLY INDICATORS CAN GIVE SLEEPLESS NIGHTS TO THE BULLS FOR NEXT FEW WEEKS UNLESS BULLS UNITE TO TAKE SPOT NIFTY UPWARDS AGAINST ALL THE ODDS  TO HAVE A  WEEKLY OR EVEN A DAILY CLOSING ABOVE THE CRITICAL  6358 SPOT LEVELS WHICH THEN  WILL ENTIRELY TILT THE BALANCE IN FAVOR OF THE BULLS TO AIM FOR NEW LIFE TIME HIGHS ONE AFTER THE OTHER.

THE INDICATORS IN THE DAILY CHARTS DON’T LOOK ENCOURAGING FOR THE BULLS EITHER. OTHER THAN THE PIDDLY GREEN CANDLE OF FRIDAY THAT FOUND THE DYING SUPPORT ON THE 50 DAY EMA, THERE IS NOTHING THAT INDICATES BULLISHNESS FOR NIFTY WHICH MAY ENCOURAGE TRADERS TO INDULGE IN MERCILESS SHORTING ACTION ON EVERY RISE OF NIFTY  AS LONG AS SPOT NIFTY CONTINUES TO DANCE UNDER  THE PERFORATED ROOF OF THE  CRITICAL 6358 LEVELS. OTHER THAN THE

NIFTY SPOT 3 MONTHS DAILY CHART 25TH SEPT TO 27TH DEC