Dated :- 07. 06. 2015

                                                                         NIFTY SPOT : 8114.70

Hi,

Readers,

Nifty came down on the basis of News and again justifying the fact that when the trend is down most of the news also becomes –ve same happened this time also.

Readers of the blog might have been enjoying because they did not had any position as the last week was news heavy.

On technical front Nifty chart has given one more bearish Head & shoulder pattern breakdown on weekly charts. This pattern is more copy book then the previous one. Readers should remember that this Nifty bearishness is also due to the bearish head & shoulder pattern made earlier which I have been mentioning regularly in my earlier blogs.

For ease to readers chart attached below:-

Weekly Chart of Nifty Showing H&S Pattern breakdown

Now What :-

Now Nifty is standing at very interesting point, from where either :-

 It should come down fast to 8000-7950 as now the trailing stop losses for persons who are short in Nifty has now been shifted to 8198. And after breaking 7950 even 7800 is possible.

OR

If Nifty does not move down sharply and some how manages to move above 8198 then that would be the first indication that Nifty wants to respect to the level of 8050 for once and want to spend some more time within the broader range of 8050-8450.

Because also remember that 8174 weekly closing basis is the level below which the bearish head & shoulder pattern which Nifty has made on weekly charts is on. Means Nifty gave breakdown of bearish H&S pattern breakdown below 8174 weekly closing basis. Thus above 8198 Nifty will be considered to be in the range and may even try to move towards 8350-8450 till 8050 is protected.

Thus the view for Nifty for the coming week is that till Nifty is below 8174 expect more bearishness and that bearishness should be fast, if it is not fast then it is better to wait. One can even understand it like this that as today Nifty is at 8114, thus below 8100 expect lower levels and if Nifty consolidates here then wait, Because any consolidation at current levels will give more probability for Nifty to move towards 8200 and we know that above that level Nifty will be in a range.  

The above view is for coming week but as far as the overall view on Nifty is concerned it is the same as I have been vocal in saying for last so many weeks that Nifty’s overall trend is down till it is below 8700. Rather I was among the few or may be the first person to say it vocally when Nifty was at highest. And the targets for that overall downtrend are very painfull and too deep. I do not want to scare the readers by revealing the targets right now. Let us keep following the moves of Nifty as it comes. However just to give the glimpse of the targets on the downside 7300 can be easily expected.

Trade accordingly.