Firstly Watch Immediate Supports for the Life and Length of on going correction
Technical Analysis,Research & Weekly Outlook
(Sep 19 to Sep 23,2016)
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1- Impulsive Wave-1 beginning after bottom formation at 6825.80 on 29-02-2016
2- Wave-1(7992 on 28-04-2016)
3- Wave-2(7678.35 on 06-05-2016)
4- Wave-i of Wave-3(8294.95 on 07-06-2016)
5- Wave-ii of Wave-3(7927.05 on 24-06-2016)
6- Wave-iii of Wave-3(8968.70 on 07-09-2016)
7- Wave-iv of Wave-3 continuation with recent bottom formation at 8688.90 on 14-09-2016
Conclusions from EOD chart analysis
Corrective Wave-iv of Wave-3 continuation with recent bottom formation at 8688.90 and no confirmation of its completion yet.
Intra Day Chart Analysis(16-09-2016)
Nifty-Intra Day Chart (16-Sep-2016):-
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1- 40 Points up in first minute after gap up opening
2- Mixed Patterns between 8820-8847
3- Sharp down after weakness beginning in European markets and Dow's Futures
3- Whole day actual trading between 8751-8847
Conclusions from intra day chart analysis
40 Points up in first minute after gap up opening and higher levels 4 hours Mixed Patterns formations also but sharp down after weakness beginning in European markets and Dow's Futures.
As deep Red closing of most European markets and sufficient weakness in US markets also last Friday therefore negative zone trading may be seen in Indian markets next Monday. As higher levels Mixed Patterns between 8820-8847 last Friday and Global markets may also remain depressed next Monday therefore on going correction continuation is expected in the beginning of next week.
Conclusions (After Putting All Studies Together)
Trends of Nifty are as follows:-
1- Long Term Trend is up.
2- Intermediate Term Trend is up and will be down below 8477.
3- Short Term Trend down.
Corrective Wave-iv of Wave-3 continuation which will firstly correct Wave-iii of Wave-3 according to following retracement levels:-
Fibonacci Retracement levels of Wave-iii of Wave-3(7927-8968):-
1- 13.0%- 8832(Retraced)
2- 23.6%- 8722(Retraced)
3- 27.0%- 8686(Almost retraced on 14-09-2016) with bottom formation at 8688.90
4- 38.2%- 8570(Crucial)
5- 50.0%- 8447(Crucial)
6- 61.8%- 8324(Crucial)
7- 70.7%- 8232
8- 76.4%- 8172
9- 78.6%- 8149
10-88.6%- 8045
Next resistances of Nifty are as follows:-
1- 8935-8956
2- 8874-8902
3- 8836-8847
Next supports of Nifty are as follows:-
1- 8695-8736
2- 8514-8580(Multiple and strong supports)
Correction is on and its continuation signals after sufficiently good selling at higher levels in previous week and Global markets weakness as well but lower levels good consolidation between 8695-8736 in previous week therefore this range will be immediate support of Nifty and its valid break down will mean sharp fall towards 8544.
Huge fall on 12-09-2016 after Global markets crash due to rates hike expectations by FOMC on 21-09-2016 and expected that Nifty will firstly prepare for post FOMC decisive moves between and near about immediate supports(8695-8736) therefore sustaining it beyond should be firstly watched in next week for the life and length of on going correction.