Technical Analysis and Research For 13-01-2012
Nifty-EOD Chart(12-Jan-2011):-
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1- Pennant Formation
2- Pennant upward break out on 10-01 2011
3- Falling Trendline
4- Falling Trendline break out on 10-01 2011
5- Positive MACD
6- Doji Candle in 2 previous sessions.
7- MACD up ward intersected average line
Conclusions from EOD chart analysis
Rally is on after lower levels consolidations and showed strengh after Pennant and Falling Trendline break out on 10-01 2011 but today down moves after intraday selling on 11-01 2011. As soon as selling developed then we immediately updated down movws projections during and after trading hours on 11-01 2011 in following manner:-
1- We clearly told during and after trading hours on 11-01 2011 that down moves will be considered after INFY quarterly results on 12-01 2011.
2- We also clearly told that until Nifty will not sustain above 4876 till then upmoves will not be considered and highest on 12-01 2011 was at 4869.20
135 Points upmoves in two sessions and its correction yesterday. Technicals of 2 previous sessions are as follows:-
1- Two Doji Candle formation
2- Both higher levels selling and lower levels buying.
Nifty-Intra Day Chart(12-Jan-2011):-
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1- Selling between 4843-4868
2- Buying between 4805-4830
3- Intraday pattern is showing consolidation formation.
4- Whole day trading between 4804-4869
Nifty-Intra Day Chart(Jan 11 & Jan 12,2012):-
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1- Selling between 4857-4876
2- Buying between 4805-4830
3- Two days trading between 4804-4876
Conclusions (After Putting All Studies Together)
Although slow but rally is on and short term trend is up as well as its very short term correction has begun after good selling at higher levels on 11-01-2012 and confirmation of support also between 4812-4728 on 12-01-2012
On going rally has not shown so much strength that we should immediately consider strong rally and on the other hand only one day selling is not suffiient to say for termination of rally.
As selling and buying both are seen in two previous sessions between 4804-4876 therefore Nifty will firstly trade and prepare for next decisive moves as well as sustaining beyond this range will be next moves confirmations.
Although good selling on 10-01-2012 but expected that follow up consolidation will develop in the coming sessions and Nifty will finally sustain above 4876 in the coming sessions and rally begun on 21-12-20110 will remain continued in next week.