Nifty Spot-Levels & Trading Strategy for 24-05-2013

Nifty Spot-Levels

R3 6173
R2 6127
R1 6047
Avg 6001
S1 5921
S2 5875
S3 5795

Nifty Spot-Trading Strategy

H6 6093     Trgt 2
H5 6064     Trgt 1
H4 6036     Long breakout
H3 6001     Go Short
H2 5990
H1 5978
L1 5955
L2 5943
L3 5932     Long
L4 5897     Short Breakout
L5 5869     Trgt 1
L6 5840     Trgt 2

Nifty(May Fut)-Levels & Trading Strategy for 24-05-2013

Nifty(May Fut)-Levels

R3 6173
R2 6126
R1 6046
Avg 5999
S1 5919
S2 5872
S3 5792

Nifty(May Fut)-Trading Strategy

H6 6093     Trgt 2
H5 6064     Trgt 1
H4 6035     Long breakout
H3 6000     Go Short
H2 5989
H1 5977
L1 5954
L2 5942
L3 5931     Long
L4 5896     Short Breakout
L5 5867     Trgt 1
L6 5838     Trgt 2

Bank Nifty(May Fut)-Levels & Trading Strategy for 24-05-2013

Bank Nifty(May Fut)-Levels

R3 13158
R2 13024
R1 12808
Avg 12674
S1 12458
S2 12324
S3 12108

Bank Nifty(May Fut)-Trading Strategy

H6 12943     Trgt 2
H5 12863     Trgt 1
H4 12784     Long breakout
H3 12688     Go Short
H2 12656
H1 12624
L1 12559
L2 12527
L3 12495     Long
L4 12399     Short Breakout
L5 12320     Trgt 1
L6 12240     Trgt 2

Mid-session Outlook (23-05-2013)

Firstly sharp down and after that more than 3 hours trading between 5972-6006 with mixed patterns. As Correction continuation therefore firstly break out of above mentioned range and following 2 levels should also be watched for of correction completion if moves below 5972:- 

1- 38.2% Retracement level- 5941
2- Next strong supports- 5935-5960 

As 38.2% Retracement level lies between next strong support range therefore sustaining beyond above support range should also be watched for the confirmation of correction completion.

Blog will be updated after 1/2 hours today. Sorry for inconvenience. 

Mid-session Outlook(22-05-2013)

Although most time trading in positive zone and now trading also in Green but today intraday charts are showing selling patterns therefore correction continuation possibility turned alive.

As busy therefore Blog will be updated during trading hours today.

Mid-session Outlook(21-05-2013)

Following technical view was updated yesterday in Technical Analysis and Market Outlook(21-05-2013):-

Indicators are showing negative divergence in Overbought zone and Short Term correction is very much due but complete selling patterns are required on EOD charts for its beginning. Intraday or very Short term correction can be seen any day in heated yesterday market and it was seen also but let follow up selling develop and Nifty to sustain below next immediate support(6147) then Short Term correction will be considered.

Following guidance was updated today in Post-open Outlook(21-05-2013):-

Nifty is trading below 6147 now and firstly sustaining it beyond should be watched for correction continuation/completion.

Almost 3 hours trading below 6147 with intraday consolidation patterns between 6120-6135 and after that up moves seen above 6147. As today consolidation is just below last Friday consolidation range(6147-6165) therefore a strong signal of correction completion but confirmation will be after sustaining above 6165.

Valid break out of 6120-6165 should be watched now for on going correction continuation/completion confirmation.

Post-open Outlook(21-05-2013)

As slipping below 6147 was expected therefore following conclusive lines were told yesterday;-

1- let follow up selling develop and Nifty to sustain below next immediate support(6147) then Short Term correction will be considered.
2- sustaining beyond 3 Sessions range should be firstly watched today for the beginning of Short Term correction below 6146 or rally continuation above 6229.

Nifty is trading below 6147 now and firstly sustaining it beyond should be watched for correction continuation/completion.

Technical Analysis and Market Outlook(21-05-2013)

Nifty-Intra Day Chart (May 16 to May 20,2013):-

Just click on chart for its enlarged view

Technical Patterns and Formations in last 3 Sessions intraday charts

1- Selling between 6176-6186 on 16-05-2013
2- Good consolidation between 6147-6165 on 17-05-2013
3- Selling between 6221-6229  on 20-05-2013
4- 3 Sessions actual trading between 6146-6229 

Conclusions from 3 Sessions intra day chart analysis 

As selling developed immediately after opening today therefore following lines were told at:-  

1- 11:46 AM- "Selling patterns formations between 6221-6229 today"
2- 12:04 PM- " Next immediate moves preparations will be done between 6147-6229"

Selling was told between 6221-6229 and Nifty could not move above 6229 as well as slipped sharply after our Outlook and Nifty traded whole day within our mentioned trading range(6147-6229) also. 

Yesterday lowest was at 6,146.05 and highest at 6,229.45.

Indicators are showing negative divergence in Overbought zone and Short Term correction is very much due but complete selling patterns are required on EOD charts for its beginning. Intraday or very Short term correction can be seen any day in heated yesterday market and it was seen also but let follow up selling develop and Nifty to sustain below next immediate support(6147) then Short Term correction will be considered.

3 Sessions actual trading between 6146-6229 with lower levels good consolidation last Friday and higher levels selling also therefore mixed patterns and sustaining beyond 3 Sessions range should be firstly watched today for the beginning of Short Term correction below 6146 or rally continuation above 6229.

FII Trading Data in Derivatives Segment on 20-May-2013

FII & DII trading activity in Capital Market Segment on 20-May-2013

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value FII 20-May-2013 3043.41 2290.04 753.37

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value DII 20-May-2013 1011.53 1775.85 -764.32

Indian Stock Markets Closing Reports(20-May-2013)

Main features of today trading are as follows

Ratios

Index Options Put Call Ratio: 1.24
Total Options Put Call Ratio: 1.15
Nifty P/E Ratio(20-May-2013): 18.23

Advances & Declines

BSE Advances : 1,121
BSE Declines : 1,304
NSE Advances :   596
NSE Declines :   818

Nifty Open Interest Changed Today

Nifty- 5900  CE(May)- -109,650(-4.67%)
Nifty- 5900  PE(May)- -259,350(-3.45%)

Nifty- 6000  CE(May)- -265,600(-8.40%)
Nifty- 6000  PE(May)- -642,950(-7.69%)

Nifty- 6100  CE(May)- -414,600(-7.39%)
Nifty- 6100  PE(May)- -167,100(-2.89%)

Nifty- 6200  CE(May)- -396,200(-5.26%)
Nifty- 6200  PE(May)- -149,000(-3.13%)

Nifty- 6300  CE(May)-  456,850(8.20%)
Nifty- 6300  PE(May)-  205,900(25.96%)

Closing 

Sensex- closed at 20,223.98(-62.14 Points & -0.31%)
Nifty- closed at 6,156.90(-30.40 Points & -0.49%)
CNX Midcap - closed at 8,130.35(-56.30 Points & -0.69%)
CNX Smallcap- closed at 3,358.95(-13.95 Points & -0.41%)

Nifty Spot-Levels & Trading Strategy for 21-05-2013

Nifty Spot-Levels

R3 6291
R2 6260
R1 6208
Avg 6177
S1 6125
S2 6094
S3 6042

Nifty Spot-Trading Strategy

H6 6239     Trgt 2
H5 6220     Trgt 1
H4 6201     Long breakout
H3 6178     Go Short
H2 6171
H1 6163
L1 6148
L2 6140
L3 6133     Long
L4 6110     Short Breakout
L5 6091     Trgt 1
L6 6072     Trgt 2

Nifty(May Fut)-Levels & Trading Strategy for 21-05-2013

Nifty(May Fut)-Levels

R3 6302
R2 6270
R1 6217
Avg 6185
S1 6132
S2 6100
S3 6047

Nifty(May Fut)-Trading Strategy

H6 6249     Trgt 2
H5 6229     Trgt 1
H4 6210     Long breakout
H3 6187     Go Short
H2 6179
H1 6171
L1 6156
L2 6148
L3 6140     Long
L4 6117     Short Breakout
L5 6098     Trgt 1
L6 6078     Trgt 2

Bank Nifty(May Fut)-Levels & Trading Strategy for 21-05-2013

Bank Nifty(May Fut)-Levels

R3 13532
R2 13440
R1 13285
Avg 13193
S1 13038
S2 12946
S3 12791

Bank Nifty(May Fut)-Trading Strategy

H6  13377    Trgt 2
H5  13321    Trgt 1
H4  13265    Long breakout
H3  13197    Go Short
H2  13175
H1  13152
L1  13107
L2  13084
L3  13062    Long
L4  12994    Short Breakout
L5  12938    Trgt 1
L6  12882    Trgt 2

Pre-Closing Outlook(20-05-2013)

As soon as selling developed then following line was told today at  11:46:00 AM

Selling patterns formations between 6221-6229 today

Although some up moves were seen after lower levels consolidations but again development of follow up selling and breaking down of today lows.

As good consolidations between 6147-6165 last Friday and until Nifty will not sustain below 6147 till then Short Term down trend will not be considered and at present  range bound market will be understood between 6147-6229 and sustaining beyond this range will be next Short Term Trend confirmation.

Mid-session Outlook-3(20-05-2013)

Although Nifty is trading near the lows of the day after higher levels selling today but emergence of consolidation patterns formation also during last more than 1 hour. Firstly valid break out of today trading range(6194-6229) should be watched for next immediate move confirmations.

Mid-session Outlook-2(20-05-2013)

Good consolidations between 6147-6165 last Friday and today selling between 6221-6229 therefore now range bound market will be seen 6147-6229 today and possibly tomorrow. Next immediate moves preparations will be done between 6147-6229. 

Mid-session Outlook(20-05-2013)

Selling patterns formations between 6221-6229 today

Rally Continuation

Technical Analysis,Research & Weekly Outlook

(May 20 to May 24,2013)

Nifty-EOD Chart (17-May-2013):-

Just click on chart for its enlarged view

Technical Patterns and Formations in EOD charts

1- 6357.10 on 08-01-2008(All time high formation)
2- Huge correction of 2008
3- 2252.75 on 27-10-2008(Wave-1 begining after 2008 correction completion)
4- Wave-1(3240.55 on 05-11-2008)
5- Wave-2(2502.90 on 20-11-2008)
6- Wave-3(6338.50 on 05-11-2010)
7- Wave-4(4531.15 on 20-12-2011) 
8- Wave-5(Recent top formation at 6,199.95 on 17-05-2013) 

Conclusions from EOD chart analysis 

Wave-5 continuation with  too much high targets above all time high(6357.10) and now its next immediate target is being understood through its internal structure and analysis.

Nifty-EOD Chart (17-May-2013):-

Just click on chart for its enlarged view

Technical Patterns and Formations in EOD charts

1- 4531.15 on 20-12-2011(Wave-i of Wave-5 beginning)
2- Wave i(5629.95 on 22-02-2012)
3- Wave ii(4770.35 on 04-06-2012)
4- Wave iii(6111.80 on 29-01-2013)
5- Wave iii gained 1341.45 points. 
6- Wave iv(5477.20 on 10-04-2013) 
7- Wave v of Wave 5 continuation.

Conclusions from EOD chart analysis 

As per Elliot Wave theory Wave-3 of any degree should never be shorter than both Wave-1 and Sub Wave-5 of that degree. Wave-iii gained 1341.45 points and now Wave-v is on after Wave-iv completion at 5477.20. As Wave-v can not gain more than Wave-iii therefore its maximum target will be less than 6818.65 and its calculation is as follows:- 

5477.20(Wave-v begun)+1341.45(Wave-v can gain maximum points)=6818.65

Conclusions (After Putting All Studies Together)

Wave v of Wave 5 is very much on after minor intraday and very short term correction completion. Although Indicators are showing negative divergence in overbought zone but forceful strong rally continuation and it require complete distribution patterns formations for any Short or Intermediate Term correction. It is also confirm that during distribution patterns formations new high of on going rally with lesser force will also be seen and until complete distribution patterns will not form till then any big correction will not be seen.  

As no selling patterns formations yet therefore rally continuation in the coming week.