Technical Analysis,Research & Weekly Outlook
(Jan 23 to Jan 27, 2012)
321 Points rally in two previous weeks but following headlines of previous weekly Outlooks are live proofs of this fact that we clearly and with full conviction predicted only for Rally and Bullish market well in advance:1- Bulls Will Welcome In Next Week(Weekly- Jan 07 to Jan 13,2012)
2- Rally Continuation in next week after Consolidations(Weekly- Jan 16 to Jan 20, 2012)
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Following 5 topics have been posted for complete analysis of next week market therefore just click following topics and understand Indian markets with intraday, EOD and indicators charts analysis:-1- Survival of Crucial Supports in 14 Months Bear Market
2- Daily Averages and Trends Analysis
3- Overbought Indicators demanding correction
4- Fibonacci Retracement Levels(4532-5400)
5- Firstly Confirmation through Selling Range Break Out
Conclusions (After Putting All Studies Together)
1- 61.8%(5068) retracement has been completed.
2- Nifty retraced from 5068 in previous week therefore sustaining beyond this level will be firstly watched.
3- Intraday charts showed selling patterns on 20-01-2012.
Short term indicators are in overbought zone and upper Band of Bollinger band has also being tested therefore short term correction is a demand before next up move. As good intraday selling and Hanging Man(Dragonfly Doji-Bearish) Candle Formation therefore correction is firstly expected in the beginning of next week. Ril news based huge volatility was seen last Friday therefore first of all sustaining beyond following 2 ranges will be seen for next moves confirmations:-
1- 5035-5053(First Indication)
2- 5004-5064(Confirmation)
Following points are suggesting for waiting before correction also:-
1- Indicators have not shown divergence yet.
2- All the Indicators are not in overbought zone.
Resistances at higher levels and supports are at lower levels therefore until Nifty will not sustain beyond any crucilal level till then next moves will not get confirmation.
Sustaining below 5004 will be correction confirmation and sustaining above 5064 will be confirmation of continuation of on going rally. As good intraday selling last Friday therefore correction of 533 points on going rally is expected. Although continuation of rally will be finally seen but correction possibility is very much alive in next week.