Weekly Outlook(18-04-2011 to 21-04-2011)

Corrective Sub Wave-F of Wave-5 is on after Sub Wave-E fast 596 points gains in 13 sessions. All trends are up therefore Bullish market is very much alive. Indian markets reacted sharply on vews in previous week, firstly 125.80 points sharp surge on sudden $7 fall and after that  86.95(61.8%) Points down on so called INFY below expectation results. Nifty traded between 5736-5944 in last 2 weks and this range break out will give following conclusions:-

1- Sustaining above 5944 will mean rally after correction completion to test minimum 6120 fast.
2- Sustaining below 5736 will mean correction continuation to test 5651/5561.

Wave-5 Sub Waves with immediate Support & Resistance

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Next trading range is 5736-5944 and contrary developments of news and technicals which are as follows:-

1- Negative news of Inflation rise,Crude rates rise again and sharp fall after Infy results.As per my view INFY over reacted after  results and closed 9.58% down after announcing good results and guidance
2- Positive technical formations are as follows:-
a- Falling Wedge(Bullish) Pattern between 5850-5812 on 15-04-2011.
b- Weekly MACD Line Positive Cross Over and its means long up trend formation possibility.
c- Continuation Pattern 'Pennant'Formations and its means continuation of on going trend which is Up Trend. Falling trend line(5940) cross-over will be its confirmation.

Conclusions (After Putting All Studies Together)

Wave-5 is on After 'ABC' Correction Completion Chart

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Nifty will trade first between 5736-5944 and prepare for next moves between this range. Nifty crossed almost all the resistances in sharp rally on 13-04-2011 but slipped also on 15-04-2011 and selling patterns seen in Bank,Reality and Auto Stocks therefore for any rally market require consolidation firstly.

Most Asian markets showed consolidation patterns therefore good sentiment expected Monday morning after positive trading Asian markets as well as Green opening also expected in Indian markets and Nifty will trade between first between 5800-5875.

Falling Wedge(Bullish) Pattern between 5850-5812 and buying between 5808-5826 seen on 15-04-2011 therefore any down move will be considered after sustaining below 5808 and for this fresh commencement of selling required between 5800-5875 on 18-04-2011. Any down move or voltality may be possible between 5736-5944 but Two Positive Formation in Weekly Chart therefore until complete selling will not develop between 5736-5944 till then any down move will not be possible.

Wave-5 is on after 'ABC' correction completion,intraday charts signalling consolidations and weekly charts positive developments also therefore consolidation begining and positive closing expected in the coming week. As some selling also last Friday therefore 5800/5736 will be watched for more correction confirmation. Crossing 5875 and sustaining above 5944 will be confirmation of 6120 fast.

As mixed intra day patterns after INFY led steep fall last Friday therefore confirmations are must. As soon as trend will clear then will be posted accoedingly in the coming sessions.