NIFTY began the week with what looked like a solid rise. Then came Thursday and Friday! NIFTY and the other markets fell in one massive hurry. Interestingly, NIFTY fell to the lower line of a long-running channel (brown). Price has bounced sharply off this line and may contintue rising. Up to a point. I suspect there could be lots more downside to come. So watch out for the red trendline providing potential resistance if and when NIFTY gets to that level.
As the chart shows, the index is seemingly hitting a wall at around 5300. Although the trendline studies I have put up on the chart seem to suggest a possible target in the vicinity of 5400, we may have possibly seen a top at 5300 itself. As ever, the market is right and we can only try and approximate its direction and destination. Good luck with your trades.
FTSE dropped last week as we expected though it fell short of the target by about 30 points. A good bounce followed. But we are back at a point where the index might encounter resistance (around 5165). If it blasts through 5165 upwards, 5220 might be a potential target. With the situation being a bit unclear, best to wait and see what the market's intentions are.
Hmmmmmm...news comes out that the US is "out of recession." How does the market greet that announcement? By dropping significantly! 
Figure 1 Long-term FTSE Chart
With FTSE closing above the 270° line, the case could be made for a continuing bullish outlook. I'd say, the index will probably attempt to cover the ground between here and the 360°. Do the bears have a chance - I think only if they force some serious selling around the present level.
NIFTY put on a heck of a rally on Thursday. What happens next? Keep an eye on the highlighted yellow spot on the chart. That area could potentially repel NIFTY and force further falls.
After a pretty good fall, NIFTY recovered very strongly. The bounce took place off the green diagonal line in th 2nd square of the grid (counting downwards). This tends to happen frequently. Big question now - will the downtrend continue or are we in for some more tests to the upside? In my opinion, we are not done with the falls.
The timing line proved to be of value as demonstrated by Tuesday's drop on the FTSE. Hopefully, this will now develop into a pullback lasting several days (and beyond!). 
I find it interesting that NIFTY seems so determined to march down while the Western markets don't quite want to go down yet. That being said, I think NIFTY is on target to meet the 180° line though I wouldn't be surprised to see it attempt a rally of sorts in between.
Chart 1 - Long term trend lines
Chart 2 - FTSE as viewed with the Gann Grid
FTSE hit the 270° line target of 4725. It's a bit early as we're two trading days away from the timing line. Further comments are in-chart.
FTSE too seemingly has an appointment with the bears on the 10th of August. Perhaps I am overstating the case. But in any case, thanks to a timing line that falls on that date, I least expect a reaction. We have not yet reached the 270° target of 4725. Who knows, the price and time target may both materialise at the same time!
10th of August 2009. That's where the nearest timing line on this grid for NIFTY is. We're still a few points away from the 360° target of 4750. Will we get there in time and on schedule? Let's leave it to the market to put on a show for us.
FTSE marches on! I could be wrong and this is probably personal bias, it feels like it is headed for the slaughter house. The 270° level of 4725 is so close as is the timing line that a sense of the inevitable is unavoidable. Is that just me or will it become fact? The next day or two should reveal all.
EDIT: On the chart, please read "Resistance at 4340" as "Resistance at 4640" Apologies for the error.
NIFTY managed to put in yet another day of rise on Friday. However, there is danger on two fronts. Firstly, there's potential resistance at 4693 and if that's not enough, the next hurdle will be at the 360° line at4750. Will NIFTY hit turbulence at either of those levels and choose to head down or will it ignore the dangers and carry on even higher? The next 2-3 days promise to be very interesting.
NIFTY put on a good fight today and closed up nicely. But what of our bearish scenario? See chart for brief comments.
Both FTSE and NIFTY seem to be at an interesting time point on the Gann grid. Both are exactly at the mid-point to their nearest timing lines and are showing some weakness. As I write this, I note that the DOW has closed down today. No doubt, Asian markets will take their cue from there. 
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