Technical Analysis,Research & Weekly Outlook
(May 19 to May 23,2014)
Nifty-EOD Chart (16-May-2014):-
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| Just click on chart for its enlarged view |
Technical Patterns and Formations in EOD charts
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(6415.25 on 09-12-2013)
5- Wave-ii of Wave-3(5933.30 on 04-02-2014)
6- Wave-iii of Wave-3 continuation with new highest formation at 7563.50 on 16-05-2014
Nifty-Intra Day Chart (16-May-2014):-
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| Just click on chart for its enlarged view |
Technical Patterns and Formations in today intraday charts
1- We sold our Call Options with more than 100 points Profit at the top of the day at 09:55 AM on Election Results like volatile day
2- Selling between 7450-7563
3- Selling between 7358-7432
4- Last 2 hours trading with mixed patterns between 7131-7265.
5- Whole day actual trading between 7131-7563
Conclusions (After Putting All Studies Together)
Although strong recovery with BJP winning Election Results on 16-05-2014 but when market was most Bullish then we understood from intraday patterns formations that market will reverse from here therefore we Booked more than 100 points Profit in our Call Option Buying call. Call Options buying call with Guidance and Profit Booking message are as follows:-
1- Profit Booking at 09:55 AM on on 16-05-2014:- NIFTY-May CE(7500)-Bought on 15-05-2014-Cover and book profit immediately-CMP-205(Lalit39)
2- Guidance posted at 07:39 AM on on 16-05-2014:- NIFTY-May CE(7500)-Bought on 15-05-2014-Market will be volatile but finally rally is expected therefore just hold & cover after my covering message(Lalit39)
3- Call posted at 03:28 PM on on 15-05-2014:- NIFTY-May CE(7500)-Buy-Positional-SL-74 & TGT-154-CMP-104(Lalit39)
(As we talk with those proofs which no one can deny therefore just click above topic links and verify live Proofs on yours own)
Nifty closed 79.85 points up but Call Options closed 11% to 57% down on 16-05-2014 because many Option traders bought both calls and Puts in expectation of any side 10% Circuit after Election Results but market reacts against the expectation of Small traders therefore both calls and Puts Options strategy failed on Election results day. Always keep in mind that markets react against general expectations and therefore a trader must be master of mass psychology.
Although BJP victory expectations strengthened every minute on 16-05-2014 but most volatile day and Indian markets closed little above the lowest of the day because profit booking started immediately after opening amid most heated sentiments. Nifty was volatile within huge 432 points after higher levels good selling therefore complete consolidation is firstly required for decisive up moves above 7563. As good support seen above 7082 and good selling also below 7563 in last 4 sessions therefore expected that Nifty will remain sideways and prepare for next moves between 7082-7563 and finally rally will remain continued after follow up consolidation in the coming sessions.
All trends are up and Wave-iii of Wave-3 continuation with new highest formation at 7563.50 on 16-05-2014. Although slipping after panic top formation after victory signals of BJP but closing also at all time high and no damage to Bullish technical formations. As Bearish Shooting Star Candle formation in both Daily and Weekly Chart on 16-05-2014 therefore follow up moves and valid break out following supports/resistances should be firstly watched for next immediate trend confirmations.
1- Supports between 7082-7102
2- Resistances between 7358-7432
3- Resistances between 7450-7563
Bullish market Wave-iii of Wave-3 continuation towards those higher levels which can not be easily imagined at this moment because minimum 6 waves are still left. Just click following Topic link for those minimum 6 Waves and calculation of next minimum target of Nifty:-
Although Nifty formed new all time high at 7563.50 on 16-05-2014 but we told non stop again and again daily only and only for Rally and up moves in all the 25 Outlooks since 02-05-2014. Just click following topic link and understand the strength of supports prepare yourself for trading in the coming sessions:-
As huge range of 481 points(7082-7563) in which Nifty has to trade and prepare for next decisive moves therefore volatility may be high. Although finally rally continuation is expected above 7563 but oscillators are overbought and sentiment is over heated after Modi victory therefore Short Term correction possibility can not be ruled out but follow up selling with sustaining below 7082 is must otherwise at present Nifty will be understood sideways between 7082-7563 and sustaining it beyond will be next immediate Trend confirmation.
