Technical Analysis and Research For
25-01-2012
25-01-2012
Nifty-EOD Chart(24-Jan-2012):-
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Technical Patterns and Formations in EOD charts
1- Falling Trendline 14 months correction
2- 200-Day EMA at 5130
3- 200-Day SMA at 5212
4- 3 Times resistance at 200-Day SMA
Nifty-Intra Day Chart(24-Jan-2012):-
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Technical Patterns and Formations in today intraday charts
1- Support between 5050-5068
2- Sharp rally after RBI Credit policy
3- Mixed Patterns between 4120-4140 in last more than 3 hours with tripple top formation.
4- Whole day trading between 5050-4140
Conclusions (After Putting All Studies Together)
As last 2 days intraday selling patterns therefore correction was expected today but as soon as positive zone and higher levels trading was seen we cautioned and confirmation requirement was updated in following line at 09:50:00 AM today;-
"news based market today therefore sustaining beyond 5058 should be firstly watched for confirmations"
As infusion of liquidity in RBI Credit Policy therefore sentiment enthused and sharp rally was seen after its announcement. Short term was already up and Intermediate term trend turned up above 5099 but its confirmation is also required through sustaining above 5099. Nifty tested 200-Day EMA(5130) today and sustaining above it will be strong indication of all trends turning up but confirmation will be after sustaining above 200-Day SMA(5212) because Nifty got stiff resistance at 200-Day SMA 3 times earlier.
Nifty traded between 4532-5399 in last 110 sessions and finally sustaining above 5399 will mean worst is over. Next resistances within this range are as follows:-
1- 5130-5225
2- 5260-5310
3- 5340-5375
Next resistance is most crucial because 200-Day SMA(5212) is falling within it.
As mixed intraday patterns between 5120-5140 in last more than 3 hours with tripple top formation therefore sustaining beyond will be firstly watched tomorrow and that will give confirmation that next moves after minor correction or without any further correction.
Expected that firstly minor intraday correction will be seen tomorrow.