Dated :- 29.05. 2016                                 NIFTY SPOT : 8156.65

Hi,

Readers,

Kudos again.

Nifty moved exactly as was mentioned by me in my previous blog dated May 22, 2016.

It was clearly mentioned that around 7670 + - few points Nifty can give sharp and surprise rebound. And in the week Nifty will give good handsome move on one side. This week will prove to be important for Indian and Global markets.

Same happened Nifty made a low of 7715 and moved up fast and sharply.

It posted a sharp & sharp move on the upside.

Frankly sharp move could come it was expected. But the actual move was so fast and furious, it was even beyond the expectation.

This is the power of technical analysis.

It is all GOD's grace.

Now What :-

Now the charts are becoming very interesting. The move on the upside from 6800 till now is virtually the mirror image of the fall that happened. Means the way Nifty came down from 8300 to 6800 it is rising in the same manner ditto mirror image from 6800 till now.

Bulls would try their hard and core hard to cross 8338 in the coming week because, if they succeed in that they would feel they have crossed the milestone.

Because while coming down we took exactly 16 weeks from 8300 to make a low of 6800 and the coming week is 16th week of the rise we are having from 6800 to till now. Thus to some extent this is important week as far as crossing or not crossing 8338 is concerned. If by chance say it is crossed in 17th week then it will loose significance.

But remember it is not easy also. Because 61.8% retracement of the fall from 9119 to 6825 is coming at 8243 and 66.67% retracement is coming at 8354.

Thus this 8250 to 8350 will automatically become the level where Nifty will face stiff resistance and will decide the further course of action. It will definitely trade choppy here and will give opportunity to make money both by selling also and by buying also.

Expect Nifty to face resistance around that level.

Nifty has given bullish breakout of inverted Head & Shoulder pattern above 8003. Generally People would be very excited with this pattern breakout, as its targets are 9200. But for me this breakout is not important and I am ignoring this breakout because the location of this pattern is not conducive and due to some other reasons also. Thus Nifty will have to make new pattern which I will consider as and if that happens. I am ignoring this Inverted Head & Shoulder pattern breakout for now.

Now I expect choppy and zigzag and volatile move in Nifty from here on, in next week.

Trade accordingly.

 Note :- All levels mentioned are Nifty spot always.