Technical Analysis and Research For 28-09-2011
Nifty-EOD Chart(27-Sep-2011):-
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| Just click on chart for its enlarged view |
Conclusions
Correction started on 05-11-2010 from 6339 and after 9 months correction Nifty is range bound within 4720-5229 for the last 35 sessions. Range bound moves and following lines are being continuously told for this market since 16.09-2011 and also being repeated again:-
1- Markets always require completion consolidation for any rally after such big fall. Big rally started in March 2009 after lower level 5 monthe range bound consolidations.
2- Investment decisions,long term positions and Portfolio management should be done according to break out of mentioned range.
3- As range bound markets therefore short term targets should remain within range with stop loss beyond range.
Break out of this range will give following moves confirmation:-
1- Sustaining above 5229 will be completion of last 10 months correction and strong rally will be seen to test minimum 200 Day EMA which is today at 5407. I would like add here that new top formation will also be considered after sustaining above 5740.
2- Sustaing below 4720 will mean crashing like situation and then deep down moves will be seen.
Resistances and supports between 4720-5229 are as follows:-
Next supports:-
1- Consolidation between 4758-4805
2 Consolidation between 4832-4881
Next resistances:-
1- Next immediate resistance 5020-5060
2- Strong resistance No.1- 5120-5160
3- Strong resistance No.2- 5167-5220
Global cues led violently volatile markets for the last many sessions and above mentioned ranges as well as technical positions within them will give next decisive moves first indication. I clearly mean to say that:-
1- Selling patterns within supports ranges will be breaking down(crossing 4720) strong indication.
2- Consolidation patterns within resistances ranges will be breaking out(crossing 5229) strong indication.
Market Outlook(28-09-2011)
US markets are more than 2.5% up at this moment but Asian markets reaction will decide Indian markets opening and today trading first range. Next resistance is at 5020 and its testing is possible but sustaining above 5060 will be next sharp up moves confirmation.
Market require complete selling patterns for any type of down moves and until fresh selling will not develop till then down moves will not be considered.
