Dated :- 19. 10. 2014

                                                                   NIFTY SPOT : 7779.70

Hi,

Readers,

First of all HAPPY DIWALI to all of you.

May Goddess LAXMI shower all her blessings on all of you.

Nifty has stayed below 7800. Bank Nifty is breaking out on the charts. Coming week is also truncated week, wherein we have only first 3 days working and Mahurat trading on Oct. 23 (DIWALI).

Expect volatile and choppy moves.

As far as Nifty’s movement is concerned view is same as was in my previous blog i.e.

Nifty has given breakdown of bearish head & shoulder pattern on hourly charts. With breakdown below 7812. Thus for very short term i.e. for first three trading days of coming week consider 7830 to be pivot point. i.e. expect small rebound above 7830 because in that case it will be called failed Bearish Head & Shoulder pattern rebound.

And every time when ever Nifty comes below 7830 again & again consider that Bearish Head & Shoulder pattern is still on and pushing itself to be effective.

Overall various technical parameters are indicating that logical targets for Nifty on the downside are 7690, 7580 and 7460. These logical target levels are also support levels for Nifty, wherein 7460 is major support for Nifty.

On upside as mentioned in my previous blog also 7960 is very stiff resistance. And now 7893 will act as intermittent resistance.

Trade Accordingly.