Bearish Head and Shoulders Pattern formations on Intraday Charts
Technical Analysis,Research & Weekly Outlook

(Sep 30 to Oct 04,2013

Following topic was posted with detailed analysis on 22-09-2013:-   

Range Bound Market between 5779-6140 for Next Trend Preparation

Followng conclusive lines were told in above topic:-

Nifty will prepare for next trend between 5779-6140 in the coming week/weeks and finally sustaining beyond this range should be watched for next trend confirmations.

As was told same happened in previous week and Nifty traded whole ween between 5811-5989 as well as prepared for next trend. 

Nifty-Intra Day Chart (Sep 10 to Sep 27,2013):-

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Technical Patterns and Formations in last 14 Sessions intraday charts

1- Bearish Head and Shoulders Pattern formations in last 14 sessions
2- Neckline at 5810

Conclusions from 14 Sessions intra day chart analysis 

Gap up strong opening on 10-09-2013 but Bearish Head and Shoulders Pattern formations with  Neckline at 5810 in last 14 sessions trading between 5810-6142. Now next big trend decider is Neckline(5810) and its breaking down will mean sharp down.

Nifty-EOD Chart (27-Sep-2013):-

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Technical Patterns and Formations in EOD charts

1- Bottom formation at 5118.85 on 28-08-2013 and Wave-1 beginning
2- Wave-1(5580.95 on 03-09-2013) 
3- Wave-2(5318.90 on 04-09-2013) 
4- Wave-3(5957.25 on 16-09-2013) 
5- Wave-4(5798.15 on 16-09-2013) 
6- Wave-5(6142.50 on 19-09-2013)
7- Correction continuation.
8- 200 Day SMA at 5841
8- 200 Day EMA at 5751

Conclusions from EOD chart analysis

As correction beginning after 5 waves completion therefore correction of whole rally between 5118.85-6142.50 is being seen and its continuation is expected in the coming week.

Conclusions (After Putting All Indicators Together)

Correction continuation with Bearish Head and Shoulders Pattern formations at the top of rally and it means high possibility of deeper correction,its confirmation will be after valid break down of Neckline at 5810. Certainly good selling at high levels in previous sessions and once sustaining below 5810 will mean sharp down moves.

Short Term Trend is down,Intermediate Term Trend will be will be down below 5810 and Long Term Trend will be down after sustaining below 200 Day EMA(5751). Although next gap support(5689-5738) is just below 200 Day EMA(5751) but good selling at higher levels therefore its testing is possible in the coming week and trend reversal will be considered after sustaining below 5689. 

Good selling at higher levels in previous week and Bearish Head and Shoulders Pattern formations on intraday charts in last 14 sessions also therefore high possibility of slipping below 5810 as well as deeper correction.

Pre-closing Outlook(27-09-2013)

Down moves but without selling patterns and on the back of weakening Indian Rupee as well as more than 40 points down Dow's Futures therefore next trend confirmation is must through valid break out of levels which have been updated in Mid-session Outlook(27-09-2013).

Mid-session Outlook-2(27-09-2013)

Although not sustaining at higher levels and slipping after some recovery from lower levels but today intraday patterns are not showing any side clear formations therefore valid break out of 5846-5905 should be watched for next moves first indication.

Mid-session Outlook(27-09-2013)

Range bound market between following 2 ranges with lower levels buying and higher levels selling also:-

1- 5811-6033
2- 5779-6140

Next trend first indication will be after valid break out of 1st range and confirmation will be after sustaining beyond 2nd range. Today down moves after selling in previous sessions and now trading near the lower levels of today but some supports also seen therefore some up moves are possible

Technical Analysis and Market Outlook(27-09-2013)

Nifty-Intra Day Chart (26-Sep-2013):-

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Technical Patterns and Formations in today intraday charts

1- Selling between 5898-5917 
2- Selling between 5887-5896 
3- Whole day actual trading between 5864-5917 

Conclusions from intra day chart analysis 

Although Nifty closed near the lower levels of the day after loosing most intraday gains but when Indian markets were trading near the higher levels of the day then following lines were told at 02:28 PM in Mid-session Outlook-2(26-09-2013):-

Although Nifty is trading near the higher levels of the day and .52% up also at this moment but today intraday charts patterns are showing selling formations.

Firstly higher levels good selling and after that closing near the lower levels of the day today therefore more down moves are expected. Follow up selling and sustaining below following supports will mean steep fall and deeper correction as well as its possibility turned higher today:- 

1- 5811-5835
2- 5779-5810

Mid-session Outlook-2(26-09-2013)

Although Nifty is trading near the higher levels of the day and .52% up also at this moment but today intraday charts patterns are showing selling formations.

Mid-session Outlook(26-09-2013)

Following line was told yesterday in both previous Outlooks:-

As supports below 5835 and resistances above 5905 therefore current month expiry is expected within 5835-5905 tomorrow.

Nifty traded first 3 hours today within mentioned range between 5864.10-5900.30.

Sideways quiet market today with some lower levels supports therefore some recovery is being seen but expiry is expected within mentioned range and may near 5900.

Technical Analysis and Market Outlook(26-09-2013)

Nifty-Intra Day Chart (25-Sep-2013):-

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Technical Patterns and Formations in today intraday charts

1- Selling between 5895-5910 
2- Consolidation between 5811-5835
3- Mixed Patterns between 5857-5885
3- Whole day actual trading between 5811-5910

Conclusions from intra day chart analysis 

Correction continuation and firstly down moves after higher levels selling but lower levels good consolidation also seen today. As today consolidation is between the lower levels of previous support range(5779-5896) therefore previous lower levels supports have been strengthened but higher levels selling also seen above this range therefore sustaining beyond mentioned support range(5779-5896) should be firstly watched in the coming sessions. 

All trends are up but higher levels continuous selling for the last 5 sessions therefore Nifty is well poised for deeper correction also but immediate strong supports lying at lower levels between 5779-5835 therefore follow up complete selling is required in the coming sessions for sustaining below 5779.

Mixed Patterns formation in last hour between 5857-5885 today therefore sustaining beyond this range will be next moves 1st signal but it should be kept in mind that next big trend will be decided by valid break out of previous 12 sessions trading range(5779-6140). 

It is clear that Indian markets are not prepared for any side decisive break out and will remain sideways tomorrow as well as prepare for next trend. As supports below 5835 and resistances above 5905 therefore current month expiry is expected within 5835-5905 tomorrow.

Post-closing Report(25-09-2013)

As soon as Nifty got supports are lower levels then we updated bounce posssibility in previous Outlook and Nifty recovered strongly from lower levels. Supports below 5830 and resistances above 5905 therefore current month expiry is expected within 5830-5905 tomorrow

Mid-session Outlook-2(25-09-2013)

As more than 3 hours trading within support range above 5779 with intraday supports above 5814 today therefore some bounce is possible

Mid-session Outlook(25-09-2013)

Although Nifty traded more than 80 points down but when was thrading in Green then we clearly told for Selling patterns formations in previous Outlook before the beginning of sharp down moves. Forceful down moves today but now trading within support range therefore some volatility can not be ruled out and once sustaining below 5779 will mean deeper correction and trend reversal will be considered after sustaining below 200-Day EMA(today at 5748)

Post-open Outlook(25-09-2013)

Selling patterns formations seen today.

Post-open Outlook(25-09-2013)

Selling patterns formations seen today.

Technical Analysis and Market Outlook(25-09-2013)

Nifty-Intra Day Chart (24-Sep-2013):-

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Technical Patterns and Formations in today intraday charts

1- Selling between 5908-5938
2- Support between 5854-5890
3- Whole day actual trading between 5854-5938

Conclusions from intra day chart analysis 

Correction continuation after 16 sessions 1023 points strong rally with following immediate supports and resistances:-

1- Strong supports between 5779-5896 
2- Resistances between 5908-5938
3- Resistances between 6095-6140

As lower levels strong supports and higher levels selling as well as complete selling was required for decisive down moves and deeper correction therefore following topic with detailed technical analysis was posted on 22-09-2013:-

Range Bound Market between 5779-6140 for Next Trend Preparation

correction begun after 5 Waves formations therefore correction of whole 1023 points rally became due and being seen. As Bull markets complete its correction within sideways moves also therefore firstly sustaining beyond 5779-6140 should be watched because lower levels strong supports within this range.   

Although good selling at higher levels but lower levels supports also seen today and strong supports below today trading range also therefore more selling is required for for deeper correction below 5779. Firstly sustaining beyond 5779-5938 should be watched for next trend confirmations and until Nifty is sustaining above 200-Day EMA(today at 5748) till then Long Term up trend will remain intact.

Pre-closing Outlook(24-09-2013)

Selling patterns formations but some supports also seen at lower levels today therefore sustaining beyond today trading range should be watched tomorrow because complete selling is required for decisive down moves.

Mid-session Outlook(24-09-2013)

Selling patterns formations seen today but complete selling is required for decisive down moves. 

Pre-open Outlook(24-09-2013)

Most Asian markets are flat to weak today after Red closing of US markets yesterday therefore sentiment is weak and negative opening will be seen in Indian markets. Although correction is on and some down moves are possible after weaker Global cues today but good consolidation in previous weeks between 5779-5888 and consolidation patterns formations seen between 5871-5896 yesterday also therefore sustaining beyond 5779-5896 should be watched for deeper correction or correction completion within sideways market.

Technical Analysis and Market Outlook(24-09-2013)

Nifty-Intra Day Chart (23-Sep-2013):-

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Technical Patterns and Formations in today intraday charts

1- Higher levels selling.
2- Consolidation between 5871-5896
3- Whole day actual trading between 5871-5989

Conclusions from intra day chart analysis 

Firstly higher levels some selling but consolidation also seen in last 3 hours therefore some up moves can not be ruled out between 5900-6050 because consolidation seen just above strong support range(5779-5888). 

As correction is on therefore firstly sustaining above 5900 should also be watched for next up moves confirmations.

Pre-closing Outlook(23-09-2013)

Although higher levels selling today and previous 2 sessions but strong supports also at lower levels between 5779-5888 and some consolidation also seen at lower levels today therefore some up moves can not be ruled out between 5900-6050. 

Mid-session Outlook-2(23-09-2013)

Correction continuation after higher levels selling today and previous 2 sessions but strong supports also at lower levels between 5779-5888,now trading within this range and finally sustaining beyond this range should be watched for deeper/sideways correction.

Mid-session Outlook(23-09-2013)

As on going rally completed 5 waves in its up moves therefore its correction was due and going on today. Nifty traded more than 1.5% down with lowest formation at 5907.35 which is just above 7 Sessions strong consolidation range(5779-5888) and until complete selling will not develop till then 5779 will not be broken down,sustaining beyond this range should be firstly watched for sideways or deeper correction.