Short Term Rally next Monday despite whatsoever Bihar Assembly Results
Technical Analysis,Research & Weekly Outlook
(Nov 09 to Nov 13,2015)
Nifty-EOD Chart (06-Nov-2015):- |
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1- Wave-5 completion at 9119.20 on 04-03-2015 and Wave-A of 'ABC' correction beginning after life time high formation)
2- Wave-A(7940.30 on 12-06-2015)
3- Wave-B(8654.75 on 23-07-2015)
4- Wave-C(7539.50 on 08-09-2015)
5- Pull Back Rally completion(8336.30 on 26-10-2015)
6- Pull Back Rally correction is on with recent bottom formation at 7926.15 on 06-11-2015
7- Long Term Trend is down after last 8 sessions closing below its decider 200 Day EMA(today at 8177)
Nifty-EOD Chart (06-Nov-2015):-
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1- 7539.50 on 08-09-2015(Wave-1 beginning after 'ABC' correction completion)
2- Wave-1(8055.00 on 18-09-2015)
3- Wave-2(7691.20 on 29-09-2015)
4- Wave-3(8244.50 on 12-10-2015)
5- Wave-4(8088.60 on 13-10-2015)
6- Wave-5(8336.30 on 26-10-2015 and correction beginning)
7- correction continuation with recent bottom formation at 7926.15 on 06-11-2015
Nifty-Intra Day Chart (Nov 05 & Nov 06,2015):-
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1- All the Down moves in Bullish Falling Channels in last 2 sessions
2- 2 Sessions actual trading between 7927-8031
Conclusions (After Putting All Studies Together)
18 Months 4000 points strong rally(from 28-08-2013 to 04-03-2015 and from 5118.85 to 9119.20) with many times new life time high formation and after that 'ABC' correction begun which gave its completion signals at 7539.50 on 08-09-2015. Then Pull Back rally started from 7539.50 on 08-09-2015 which completed its 5th Wave at 8336.30 on 26-10-2015 and after that its correction begun which is in continuation with recent bottom formation at 7926.15 on 06-11-2015.
Fibonacci Retracement levels and next 7 supports of on going correction has already been updated in following previous weekly analysis topic:-
Correction Continuation towards next 7 Supports
Nifty has completed mentioned 50% retracement and closed within 2nd support range last Friday. Certainly correction of Pull back rally is very much on and no confirmation of its completion yet but following points are giving signals of Short Term Rally in the beginning of next week:-
1- Short Term indicators are oversold
2- Intraday charts of last 2 sessions are showing consolidation patterns formations
3- Selling patterns not seen in last 2 sessions despite negative closing.
4- Doji Candle formation last Friday which is also a signal of down moves stopping.
Correction started from 8336.30 on 26-10-2015 and its completion will be considered only after sustaining above following levels:-
1- Next resistances between 8108-8152
2- Long Term Trend decider 200 Day EMA(today at 8177)
As last 2 sessions intraday charts have shown consolidation patterns formations therefore firstly Short Term Rally is expected on 09-11-2015 despite whatsoever Bihar Assembly results on 08-11-2015 and 200 Day EMA(today at 8177) will decide Rally continuation or termination.