7917 Will Confirm Next Big Moves
Technical Analysis,Research & Weekly Outlook
(Dec 26 to Dec 30,2016)
Nifty-EOD Chart (23-Dec-2016):-
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1- Impulsive Wave-1 beginning after bottom formation at 6825.80 on 29-02-2016
2- Wave-1(7777.6 on 31-03-2016)
3- Wave-2(7516.90 on 11-04-2016)
4- Wave-3(8728.40 on 09-08-2016)
5- Wave-4(8540.10 on 11-08-2016)
6- Wave-5 completion at 8968.70 on 07-09-2016 and corrective Wave-A beginning
7- Wave-A(7916.40 on 21-11-2016)
8- Wave-B(8275.00 on 09-12-2016)
9- Corrective Wave-C continuation with recent bottom formation at 7942.10 on 23-12-2016
Intra Day Chart Analysis(23-12-2016)
Nifty-Intra Day Chart (23-Dec-2016):-
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1- Consolidation between 7942-7966
2- Selling between 8002-8022
3- Bearish Head and Shoulders formations in last 4 hours with Neckline at 7980
4- Whole day actual trading between 7942-8022
Conclusions from intra day chart analysis
Although up moves in the Mid session after first 2 hours lower levels consolidation but selling was also seen at higher levels of the day therefore market will be understood sideways within day's trading range. Intraday Bearish Head and Shoulders formations in last 4 hours and once break down of its Neckline(7980) will mean strong signal of down moves below day's lowest.
Conclusions (After Putting All Studies Together)
As nifty slipped below Wave-ii of Wave-3(7927.05 on 24-06-2016) on 21-11-2016 and new intraday lowest formation was below it at 7916.40 therefore waves structure of post 29-02-2016 rally has been recounted in above manner because as per that Wave structure which was recently updated on 20-11-2016,Nifty was not to slip below Wave-ii of Wave-3.
Now corrective Wave-C continuation with recent bottom formation at 7942.10 on 23-12-2016 and no confirmation of its completion yet on EOD charts therefore correction continuation will be considered according to following Fibonacci Retracement levels of post Budget Rally(6826-8968):-
1- 13.0%- 8689(Corrected)
2- 23.6%- 8462(Corrected)
3- 27.0%- 8389(Corrected)
4- 38.2%- 8149(Corrected)(Crucial)
5- 50.0%- 7897(Crucial)
6- 61.8%- 7644(Crucial)
7- 70.7%- 7453
8- 76.4%- 7331
9- 78.6%- 7284
10-88.6%- 7070
Next supports of Nifty are as follows:-
1- 7942-7966
2- 7917-7942
Next resistances of Nifty are as follows:-
1- 8137-8159
2- 8165-8200
3- 8168-8224
Sustaining below 7917 will mean correction continuation towards following supports and may be much below 7525 also:-
1- 7690-7795(Multiple supports)
2- 7525-7595
As corrective Wave-C is having much deeper correction targets and correction is still on therefore firstly sustaining beyond 7917 should be watched in next week because it will confirm next big moves amid correction continuation possibilities.