Volatile Week between 6130-6415
Technical Analysis,Research & Weekly Outlook
Technical Analysis,Research & Weekly Outlook
(Jan 27 to Jan 31,2014)
Nifty-EOD Chart (24-Jan-2014):- |
| Just click on chart for its enlarged view |
1- Bottom formation at 5118.85 on 28-08-2013 and Wave-1 beginning
2- Wave-1(6142.50 on 19-09-2013)
3- Wave-2(5700.95 on 01-10-2013)
4- Wave-i of Wave-3(6342.95 on 03-11-2013)
5- Wave-ii of Wave-3(5972.45 on 13-11-2013)
6- Wave-iii of Wave-3(6415.25 on 09-12-2013)
7- Wave-iv of Wave-3(6129.95 on 18-12-2013)
8- Wave-v of Wave-3 with descending triangle pattern formation in last 27 sessions between 6130-6415.
9- 200-Day EMA(today at 5995)
Conclusions from EOD chart analysis
Long Term trend is up,Short Term trend is down and Intermediate Term Trend is sideways for the last 27 sessions between 6130-6415 with descending triangle pattern formation and valid break out of this range will decide next big trend.
Wave-v of Wave-3 is on for next rally above all time high but this Wave has not shown required strength and turned range bound because next Union Govt. stability after Parliamentary Elections has turned at stake due to the possibility of BJP votes cutting by Aam Admi Party and resultant expectations of weaker Government formations after Union Elections-2014.
As opinion polls results in previous week have boosted BJP’s chances in 2014 Lok Sabha elections therefore expected that now Nifty will remain range bound between 27 sessions trading range(6130-6415) and prepare for next decisive moves. Wave-3 continuation towards minimum target of Nifty at 6724.60. Its calculation has already been updated in following topic on 21-10-2013:-
Now expected that Nifty will prepare for 6724.60 between 6130-6415 and next week may be highly volatile because:-
1- Week may begin will deep down moves because 2% crash in US markets last Friday.
2- RBI Credit Policy on 28-01-2014 and expectation no change in Repo Rates.
3- FOMC mmet on 28-29 January and Indian markets will react on its announcements 30-01-2014 which is derivative expiry day.
Long Term trend is up and Wave-3 is on toward 6724.60 therefore expected that Indian markets will prepare between 6130-6415 for up moves above 6415 in the coming volatile week.