WIPRO is going through a process of multi-pattern breakdown. All PATTERNS listed in textbook are BEARISH, no point naming them. As far as trades are concerned, there are 2,possibilities here, 1, we initiate shorts below 376, and 2, we sell all upsides till 391 in both sinarios targets would be 353 and 326 on cash in coming days.

ICICI;BANK; is getting closer to a (VIBRATION PATTERN) breakdown a print of 900 would eventually conform that. Below 900 PATTERN targets would be 856 and 811 positionaly. Everyone in this planet would agree that, it have a classic double top formation at 958.

NIFTY has held its support of (18,465) and NIFTY BANK has held (43,700) so things are fine for now. Weakness would emerge only below these levels else not. NIFTY has got closer to the upper boundry of (18,800) which we discussed earlier. My hometown is likely to get impacted by CYCLONE so lets discuss what happens if NIFTY makes a new high above (18,887) In a low probablity event for any reason if NIFTY makes a new high then it would behave exactly like NIFTY BANK, the another high would again be within 1% from (18,887). Lets see, short term TIME CYCLES are placed neutral to positive until friday. MARKETS are getting support from strength in U.S. MARKETS so once U.S. MARKETS TOP out other MARKETS including INDIAN MARKETS should end this phase and activity should pick up mainly from next week. many CYCLE ANALYSTS have tried to predict the TOP for U.S. MARKETS but all of them including me have so far not been successfull. I think many of us have been impatient, yes few CYCLES have extended abnormally but the most logical thing from here would be to wait for seasonal CYCLES to turn which would turn after 21st,june. Historicly when individual CYCLES disconnects with PRICES it’s always NATURAL CYCLES who brings that alignment back between PRICE and TIME. U.S. MARKETS are at extreme levels especially NASDAQ I don’t mind the valuations that’s not my subject, I monitor CYCLES and basic character of CYCLES is, (An extreme on one side is always followed by extreme on opposite side).

NIFTY have nothing to complete on upside markets are likely to consolidate further below (18,800) and this consolidation would continue as long as NIFTY manages to hold above (18,465) on spot. A break of (18,465) would signal short term trend reversal which should carry prices closer to (18,225) even a lower low below (18,500) would ring warning bells for long trades. The failure of NIFTY BANK to cross (44,498) as of today is not a good sign. (43,700) would be a key level here, a lower low below (43,700) should conform a throw over TOP. Lets see what happens after that. As far as levels are held it’s all fine for now.

HDFCBANK after that major gap down of 5th,MAY have done nothing. Infact it has been putting pressure on BANKING index which have stayed largely flat since several weeks now. STOCK is going through a BEARISH consolidation which is likely to end very soon. short-term TIME CYCLES would give BEARISH crossover once it gives a daily close below 1600. PRICE setup here is very narrow but well below critical PATTERN levels. STOCK has given a (SQUARING PATTERN) breakdown below 1642 if it gets closer to that it’s a safe short with stop above 1692 and Targets below 1565 and 1525 on cash. A daily close below 1600 would also signal the same.

NIFTY finally got that higher high above (18,707-18,722) which we were expecting since 30th,MAY. So PATTERNS which I refered has completed now and MARKET is now getting closer to a very strong resistance of (18,800#18,900) on spot. lets see, what market does closer to this resistance zone, (NIFTY) had the high of (18,662) on last Tuesday and from there it took unusual amount of TIME to achieve its PATTERN objectives. PRICE ACTION has been very choppy but it can stay this way as long as spot manages to hold above (18,465) a break of (18,465) would signal short-term weakness which should drag PRICES closer to (18,225). So watch out for that. NIFTY BANK is even more choppy then NIFTY, anyways it is yet to cross previous weeks high. Today is a policy day so lets see whether it can cross that. TIME wise till 12th,june we have to give that a chance. In case it fails to cross that till 12th, then it’s already roled over. Critical 3,days for BANKING index.

NIFTY still have some room on upside, a higher high above (18,707-18,722) would complete 2,price patterns. Once we get that higher high MARKETS then would require to break (17,484) for a breakdown. Watch out for (17,484) as a short term support on spot. TIME wise today and tomorrow would be very critical for INDIAN MARKETS tomorrow in final 30,minutes there would be an INDEX rebalancing which at times could trigger nasty price moves. Closer to (18,750) NIFTY would complete important PRICE moves from lows of (16,828) (17,561) and (18,055) So that was a key reason I posted last FRIDAY that this rally on (NIFTY) could fall short of its record highs. The rise on (NIFTY) from MAY,5th low of (18,055) is very unconstructive based on few rules of SPACE and TIME analysis. Tough subject to put in, but lets see, watch out for given PRICE levels. NIFTY BANK patterns have gone more intresting, it has posted a new high yesterday. it is developing a very rare pattern which is still under process so let it complete that, for short term consider things to be fine as long as it manages to hold yesterdays GAP. stay cautious once that GAP is closed.

NIFTY have posted a new high for the month which should not come as a surprise. Yesterday we expected a decisive move to kick in either today or on MONDAY. Since supports were held there was this possiblity of an upmove. this rally should only be a 1,or,2,day affair but wait for market to signal that. Earlier I posted a Technical reason why NIFTY cannot make a fresh record high, that also has to be considered before we get more exited. So there is a fare possiblity that this rally should fail in mids of new highs. On NIFTY BANK I already posted yesterday lets give that more time to cross 44,152 on cash. We have now entered in june series and this series is known for good amount of volatility which provides decent trading opportunities. At least month of june wont be as dull as MAY

NIFTY needs no analysis the breakdown point continues to stay at 18,042. If people can make anything of this 300 point range since 28th,APRIL then its truly their skills because MARKET is doing nothing. The question which is now disturbing all traders is how long things can continue this way?. We believe MARKETS are reaching a terminal point in TIME CYCLES where they have to make a decisive move either tomorrow or next MONDAY. Would look forward for that. NIFTY BANK is more intresting. the rally here since MARCH lows is very strong , but its pausing at a very critical resistance of 44152. If it fails to go above that then, this PATTERN would go in history books for gann as well as ELLIOTT students. Lets give it some more time to cross 44,152 supports here are placed at 42,500 below 42,500 we would call for a higher degree reversal. Would discuss its consequences as and when that happens.

DXY finally seems ready to end its months long consolidation. After January we never felt like we really have to reconsider our BULLISH view here. 101 was a level which we strongly considered as a durable bottom. We finally got low at 100.79 this low we believe is a long term low holding which DXY in medium term could carry PRICE above 120. For short term 106 could be that level which would act as resistance, above 106 we should see fresh 52,weeks high which was at 114. We have been hearing on potential impact on $ if U.S. defaults on its debt obligations, few even claims that a U.S. default could crash $ and literally everything would end. We believe U.S. is not going to default, rest what happens, lets see.