YES.
That is what the Nifty Weekly charts are telling us to do. Pray!
Today's IIP figures again were below the mark at a measly 3% against 8.60% in the corresponding month in previous year...
This led me to re-visit the Nifty weekly charts for some indications and what i see (or believe what I see) is a head and shoulder reversal pattern developing in the weekly chart !!!
The neckline is near 4600 Nifty and it is highly likely that the current rise to near 5300 was to create the 'right' shoulder!. And yes we must not forget that the pre Jan 08 rally to 6300+ Nifty had all the characteristics of a typical 'head' formation
If , and I repeat If, this happens, we are facing a neckline break out below 4600 which could lead the market to witness further selling pressures....
Wooops - not a great way to start the week - watching a H&S on the weekly index charts
Time will tell, but for the time being, lets watch out for the Nifty range of 4800 - 5200 to be broken to give us further directions
Happy 'finger crossing'
CA Rajiv D Khatlawala
1 comment:
This pattern took 1 year to form, I think we will enter a year long correction.
We should pray definitely!
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