Inverse Head and Shoulders formations and forceful break out of Neck Line

(Just click on chart for its enlarged view)

Mid-Session-3(04-01-2011)

Some intraday selling seen near 6152(tripple top) as well as some support also seen at 6126(higher bottom formation). Nifty will prepare within 6126-6152 for next moves and final view will be formed after mentioned range break out and sustaing beyond.

Mid-Session-2(04-01-2011)

Follow up selling seen today and more down move possibilities can not be ruled out.

Mid-Session(04-01-2011)

As intraday charts showed genuine selling patterns therefore intraday and very short term correction was projected and seen immediately after opening today. All trends are up and follw up selling requires today for more down move confirmations.

Indian markets slipped into Red despite strong global cues and it is first weakness signal. Let market prepare for next moves and intraday charts complete a formation then will be decided accordingly.

NIFTY-JAN F&O-1ST SHORTING TRADE OF 03-01-2011-COVERING

NIFTY JAN F & O(SHORTED SHORTED ON 03-01-2011)-COVER AND BOOK PROFIT IMMEDIATELY-CMP-6158

NIFTY-JAN F&O-1ST SHORTING TRADE OF 03-01-2011-MESSAGE

NIFTY JAN F & O(SHORTED SHORTED ON 03-01-2011)-GLOBAL MARKETS STRONG TODAY MORNING BUT HOLD AND JUST WAIT FOR MY COVERING MESSAGE

Mnor Intraday or Very Short Term Correction Possible

Pre-Open Market Outlook(04-01-2011)

All trends are up. Nifty traded with most heated sentiments within 6154-6178 yesterday and intraday charts are showing genuine selling formations therefore consolidation is must for sustaining above 6178. All the global markets closed with strong gains and Us markets are also trading more than 1% up at this moment therefore positive opening expected today but Nifty will not sustain above 6178.

Short term indicators are overbought and yesterday intraday charts genuine selling patterns therefore slipping below 6154 will be seen and Red closing expected today despite most bullish global sentiments.

Trading Levels for 04-01-11

Nifty Spot Levels for 04-01-11

R3 6207
R2 6193
R1 6175
AVG 6161
S1 6143
S2 6129
S3 6111  

Nifty Jan Futures Levels for 04-01-11

R3 6233
R2 6220
R1 6201
AVG 6188
S1 6169
S2 6156
S3 6137
 
Bank Nifty Jan Futures Levels for 04-01-11

R3 12021
R2 11988
R1 11942
AVG 11909
S1 11863
S2 11830
S3 11784

NIFTY-JAN F&O-1ST SELLING TRADE OF 03-01-2011-TRADE

NIFTY(JAN FUT-SELL-POSITIONAL)SL-6211-TGT-6144-CMP-6180
NIFTY(JAN PUT OPTION-BUY-POSITIONAL)-S.P.FOR PUT-6100,6200-NIFTY(JAN FUT)-RATES ARE FOR-SL-6211-TGT-6144 FOR ALL OPTIONS-CMP-6180

Mid-Session-2(03-01-2011)

Indian markets under performing and selling signal are also seen in today intraday charts. Until Nifty will not sustain above 6180 till then next up move will not be considered.

Mid-Session(03-01-2011)

All the global markets are welcoming 2011 with strong gains today morning. Asian markets are more than 1% up and Dow's futures is trading more than 60 points up therefore Indian markets opened gap up. Bull rally is on and according to its nature it corrects and consolidate at higher levels also. As sentiment is over heated today morning therefore cooling down in intraday correction is must for fresh long positions. Let market form minumum intraday base then buying should be considered.

Rally is continued after last week Break Out

Weekly Analysis- 03-01-2011 to 07-01-2011

Wishing you all a very Prosperous, Happy, Healthy & Wealthy New Year 2011

All trends are up, 5th impulsive sub-wave of wave 3 confirmed in last week after completing intermediate term correction in 27 sessions range bound moves.

1-Waves Structure of on going Trend chart:-

(Just click on chart for enlarged view)

Nifty closed at 6135 after forming high at 6147 last Friday. Next resistance ranges are of Indian markets are as follows:-

1- 6180-6195
2- 6250-6320(strong resistance)

5th impulsive sub-wave of wave 3 commenced in last week its Projections and targets are as follows

1- 1st impulsive sub-wave of wave 3 moved up- 5399-3919=1480 points up
2- 2nd corrective sub-wave of wave 3 moved up- 5399-4786=613 points down
3- 3rd impulsive sub-wave of wave 3 moved up- 6339-4786=1553 points up
4- 4th corrective sub-wave of wave 3 moved down- 6339-5690=649 points down
5- 5th impulsive sub-wave of wave 3 if on from 5690 with following projections:-

A- As per Elliot Wave theory "Wave 3 should not be shorter than both Wave 1 and Wave 5" therefore Wave 5 will move up less than 1553 point. Wave 5 started from 5690 and its:-

Wave 5 maximum lenth will be:- 5690+1553= 7243

B- 4th corrective sub-wave was 649 points down and will be better to draw Fibonacci levels acccording to that:-

1- 123.6%- 6492
2- 138.2%- 6586
3- 150.0%- 6663
4- 161.8%- 6740 
5- 176.4%- 6834
6- 200.0%- 6988
7- 223.6%- 7141

As per theory Nifty will positively retrace before testing 7243 and then ABC correction of Wave-3 will be seen according to Fibonacci levels from the top to origin point of Wave-3(3919)

Conclusion

Uptrend got confirmation last week and will be seen now to test above mentioned levels. Complete distribution patterns require for begining of any down trend and until that will not happen minimum on EOD charts till then and any down move will not be considered. Intraday and very short term correction of previous fast up moves always happens to cool down sentiments and that will be seen regularly.

Bullish formations,Trnd lines and Break out:-

(Just click on chart for enlarged view)

Last 2 sessions intraday charts are showing distribution signals therefore a minor/very short term correction is possible in the begining of week and fresh rally will be seen after mentioned correction completion in the coming week.

Finally rally will remain continued and weekly closing will be in Green.

Trading Levels for 03-01-11,Next Week & Jan 2011 Levels

Nifty Spot Levels for 03-01-11

R3 6196
R2 6171
R1 6153
AVG 6128
S1 6110
S2 6085
S3 6067  

Nifty Jan Futures Levels for 03-01-11

R3 6237
R2 6209
R1 6186
AVG 6158
S1 6135
S2 6107
S3 6084
 
Bank Nifty Jan Futures Levels for 03-01-11

R3 12112
R2 11994
R1 11916
AVG 11798
S1 11720
S2 11602
S3 11524

Nifty Spot Weekly Levels (03 Jan to 07 Jan 2011)

R3 6359
R2 6253
R1 6194
AVG 6088
S1 6029
S2 5923
S3 5864

(Jan-2011)(Monthly Levels)

R3 6707
R2 6427
R1 6281
AVG 6001
S1 5855
S2 5575
S3 5429

Bullish formations,Trnd lines and Break out

(Just click on chart for its enlarged view)

Waves Structure of on going Trend

(Just click on chart for its enlarged view)

Mid-Session-2(31-12-2010)

Nifty is trading above 6100 since morning today and also crossed resistance of 6120. Rally is very much on to test last tesistance of rally(6250-6320). Risky players may may ride on running horse and safe players may wait slowing down or stopping of horse(minor intraday cotrrection) for riding.

Mid-Session(31-12-2010)

Market heated immediately after opening today and will be safer to buy after some intraday correction

Pre-Open Market Outlook(31-12-2010)

Following lines were told yesterday:-

"6100 expected within 2/3 sessions"

Nifty traded most of the time within 6070-6085 and tested 6100 in last half hour yesterday as well as closed above 6100 but Nifty Jan Fut did not responded this last half hour sharp surge. Although Nifty Jan Fut moved up in last hour but completely under performed Nifty spot yesterday. Mentioned surge was seen in resistance range(6080-6100) and Nifty Jan Fut intraday charts of yesterday are indicating selling signals also therefore more consolidation required within 6080-6120 for fresh up moves. As most of the pivotal stocks intraday charts of yesterday are suggesting buying formations therefore more up moves are expected after some more consolidation today.

As more consolidation is fresh rally demand therefore it will be seen first within 6080-6120 today and fresh rally above 6100 expected in next Session,Week,Month & Year.

Trading Levels for 31-12-10

Nifty Spot Levels for 31-12-10

R3 6162
R2 6134
R1 6118
AVG 6090
S1 6074
S2 6046
S3 6030  

Nifty Jan Futures Levels for 31-12-10

R3 6180
R2 6160
R1 6145
AVG 6125
S1 6110
S2 6090
S3 6075
 
Bank Nifty Jan Futures Levels for 31-12-10

R3 11842
R2 11790
R1 11735
AVG 11683
S1 11628
S2 11576
S3 11521

Mid-Session Outlook(30-12-2010)

Market slipped from higher levels on expected therefore following lines were told in Pre-Open Outlook:-

1- Voltality and little profit booking at higher levels may be seen

2- Fresh long positions should be created after completion of intraday corrections

Sentiment was heated today morning therefore cooling down was consolidation requirement and it is being happened. Intraday charts not showing distribution formation despite Nifty intraday trading low formation. Fresh consolidation expected and its signals are being seen also. As market has to prepare to cross next resistance(6080-6120) therefore trading near its lower band and fresh up moves are expected after 1/2 sessions fresh consolidations.

Rally after Correction Completion

Pre-Open Market Outlook(30-12-2010)

Intermediate term correction which begun from Deepawali Muhurrat session finished yesterday after 27 days range bound moves between 5690-6069. Although Nifty could not closed above range but last 2 sessions intraday consolidations and up moves patterns are suggesting that Nifty will sustain finally above 6069 and fresh rally will be seen now to test follwing resistances:-

1- 6080-6120
2- 6180-6195
3- 6250-6320(strong resistance)

As 27 sessions range bound move is being broken out therefore decisive rally and above mentioned 3rd resistance testing possibility can not be ruled out.

All trends are up now and 5th impulsive sub wave of wave 3 is confirmed yesterday and its targets are much above all time high but its calculations will be disclosed after crossing crucial resistances. Mentioned Waves structutes of Wave 3 is clearly shown in following EOD chart:-

1- Waves structutes of Wave 3 Chart:-

 

(Just click on chart for enlarged view)

Sentiment will be heated today morning and Nifty has to cross immediate resistance range(6080-6120) for any fresh rally therefore consolidation requires within mentioned range. Voltality and little profit booking at higher levels may be seen but finally fresh rally above 6100 expected within 2/3 sessions. Fresh long positions should be created after completion of intraday corrections.

Today Green/Red/flat closing can not be guaranteed but fresh rally above 6100 expected within 2/3 sessions.