October 2010 is suggesting selling month from intraday,daily,weekly and monthly charts patterns. Following patterns are telling for down moves in the begining of Nov 2010:-
1- Last month candle is inverted hammer(Bearish).
2- All 4 October Candles are Red.
3- Oct Derivative closing in Red with record volumes.
4- Daily Charts are indicating Head & Shoulders formations in Oct.
5- Rounding top like formation in Oct.
5- ABC correction is on toward minimum target at 5849.
Only minor pull back was expected and it was declared within first 2 hours in Mid Session outlook last Friday. As sharp recovery was seen in last 1 hour and strong RIL quarterly Results also therefore sentiment will be heated Monday morning and strong weekly opening is possible but expeted that Nifty will not sustain above 6080 in the coming week and will slip below 5932 after fresh selling in the next couple of sessions.
9 Legs have ben formed in last 27 sessions and this this foemations 5 upward and 4 downward legs have been formed and last 10th leg is left and expected it will complete at 5849 or below in the begining of this month.
10 Legs Formations Chart
Global Markets impact on Indian markets
US markets are mature for sharp correction and steep fall may be seen. It seems that Europen markets and some Asian markets are also well riped for fall. Expected that global sharp fall may be seen in the leadership of US markets in this week.
Conclusions
Huge volality expected in this bearish week and finally Red weekly closing expected.