Market Next Week

Here, I give my view of What NIFTY price action might be.For Chart details you may visit my Blog

http://www.masterstrokesnifty.blogspot.com/

Best Regards
MASTERSTROKES

Last week we saw the NIFTY dropped to 4914, a couple of highly volatile days and took turn northwards. During this period, I had presented through my Blog a trade set up which gave 220 points for those who went short on NIFTY along with the guidelines. The entry and exit points given in the trade set up were as shown EnS and ExS. You may notice that NIFTY touched the trend line “S” and reversed its direction as forecasted in my write-up last week.Later on 15 may a call was also given to go long on May 15th as marked EnL




Now what is in store for next week? We have already seen that NIFTY is cleanly moving in the rising channel. I anticipate NIFTY to move to 5535-50 by 25 May 08. There are few possibilities.
Go till the 5550 and reverse its direction.
Go till 5550, breakout, and move above the all time high.
Go till 5550, retrace a bit and go for a much powerful breakout.

Incase the short-term rally fails, and NIFTY close below 5000, we can be sure that this rally has prematurely came to an end and market is reversing and a huge fall is inevitable. For SENSEX, the critical level is 17000.


For chart details you may visit my Blog.
http://www.masterstrokesnifty.blogspot.com/

Best Regards
MASTERSTROKES

What an eventful week it was. NIFTY Lost over 4%. In my last week’s report, I was expecting NIFTY to go to near 5550. Unfortunately the rally terminated prematurely and turned back. However, I had given a call to cover and go short a day before the fall starts through my Blog. Those who read the weekly report are requested to visit my Blog for any sudden turn. A premature turn back is called a partial rise and such formations are always dangerous and will result in a fall of large intensity.

The next support levels are graphically shown on the chart. The main target as per the Pattern Theory is 3950.
Referring to the chart, you can see that NIFTY has broken down the trend line “S” and closed below. This is an indication of the bad times ahead. By measuring the strength of the move, it is more than likely that a Black Monday (26 May 08) might result along with a global crack of stock markets. It could be mayhem of cash stocks when NIFTY might run straight to 4750 or beyond. Those who visited my Blog, would have seen my call 3 days back to exit all cash stocks with immediate effect. Anyways, next week is going to be a week of heavy losses on all bourses.
For any unexpected reversals the Stop and Reversal (SAR) level for NIFTY is 5113 and for SENSEX, it is at 17201. You may note that I update the Blog everyday and give the SAR values along with Caution levels.

For Chart, you may check my blog

MASTERSTROKES

http://www.masterstrokesnifty.blogspot.com/

As forecasted in my last week’s report, it was week of mayhem most part of the week except a couple of days. We can see from the chart a congestion region being formed which is circled. Again notice that it is being formed very close to the 61.8% Fibonacci level. This shows that smart money is coming in to take the market up.

What can be expected from the market next week? Definitely the daily wand weekly trend is downwards. But there are chances of a rally coming in during next week. Now we have to see if there are chances that a smart rally will come in or a premature break down happens. What are the critical levels in the price action pattern?

We can see that a falling channel between “R” and “S” has formed in NIFTY and there are now two possibilities.
1. A breakout from the congestion region and move towards “R” and later another breakout from “R”.
2. A breakdown from “S” and go for a deep correction.
For next week, I expect market to rally towards “R”. However, with the current trend, a breakdown cannot be ruled out.

What are the logical levels to ascertain which way the market is moving?
In the daily scale, is nifty cross 4932, I would say NIFTY is going for a small rally. If by the end of the week, NIFTY moves above 5130, I would say NIFTY is preparing for a bigger rally.
As NIFTY is at present paused near “S’ it is difficult to say which way it will move next week. There is a 60-40 chance in favor of a rally.
Is NIFTY JUNIOR cross 8354, we will see many cash stocks too participating in the rally.
This week, In NIFTY stocks, NATIONALUM and Dr. Reddy looks to be the strongest and SBI and ONGC look to be the weakest and In JUNIOR stocks LUPIN and IFCI looks to be very strong.
Unless above critical levels, especially the weekly level is crossed, it is not advised to enter into cash stocks. The reason is market breadth is weakening and more and more money is flowing out of cash stocks.
Some of you had utilized my trade setup given through my Blog and another successful trade was completed. There is be more similar “Ready to Trade” trade setups will be given through the Blog
For Chart details, you may see my Blog.

MASTERSTROKES
http://masterstrokesnifty.blogspot.com/

Last week too we saw mayhem. From Jun 3 through 6, we saw another congestion region being developed as in Box “B”. It is similar in behavior to that in Box “A”. As it stands both Daily and weekly trends are down.

I expect a highly volatile Monday after which nifty will take a direction. NIFTY will move in a direction depending on which way a breakout happens from Box “B”. We are currently in a threat that market may breach the Jan 22 Low. As the Box “B” is too close to Jan and March lows, it is more than likely that a breakdown can happen next week. Definitely, we should expect the reverse too to happen and those who are short / long should place strict stops to avoid heavy loss. The reason being, the next breakout will be with high gap up / down.
In short, next week is going to be very critical for medium trend.
As usual, I will be updating the trade setup every day, before market hours through my Blog.

For chart details you may visit my blog.

MASTERSTROKES
http://www.masterstrokesnifty.blogspot.com/