Technical Analysis,Research & Weekly Outlook
(Feb 27 to Mar 02,2012)
Technical Analysis and Research of EOD Chart,Technical Positions,next possibilities have already been explained in following topics with 3 Charts therefore not being repeated. Just click following topic links and go through detailed analysis for trading in next week:-
Conclusions from EOD chart analysis
Correction commenced after good selling between 5588-5625 therefore complete consolidation is required to cross 5625 and in the same manner strong supports also between 5340-5415 therefore complete distribution is must for slipping below 5340. Although Nifty tested mentioned support range and closed above it but both supports and resistances both are sufficiently strong and market require complete preparation for breaking out of these 2 Resistance/support ranges.
Expected that Nifty will firstly trade minimum 2/3 sessions between 5340 and 5625 and prepare for next moves and sustaining below 5340 will mean deeper correction after breaking down of strong support ranges,sustaining above 5625 will mean strong rally after correction completion.
Conclusions (After Putting All Studies Together)
Long term and Intermediate term trends are up and Short term trends is down after 3 sessions selling between 5588-5625. As correction commenced after good selling therefore complete consolidation is required to cross 5625 and in the same manner strong supports also between 5340-5415 therefore complete distribution is also must for slipping below 5340. Although Nifty tested mentioned support range and closed above it on 24-02-2012 but both supports and resistances both are sufficiently strong and market require complete preparation for breaking out either of these 2 Resistance/support ranges.
Following 2 ranges should be kept in mind:-
1- 5370-5530(Expected that Nifty will trade between this range in the next 2/3 sessions and prepare for next moves. Sustaining beyond this range will be first indication of correction continuation/completion)
2- 5340-5625(Sustaining beyond will be confirmation of correction continuation/completion)
Sustaining below 5340 will mean deeper correction after breaking down of strong support ranges as well as Intermediate term trend turning down. Sustaining above 5625 will mean strong rally after correction completion. Indian markets will firstly prepare minimum 2/3 sessions within sideways moves and then sharp moves will be seen after break out of mentioned ranges.
It is the character of Bull markets that markets does not moves deep down and completes correction at higher levels consolidations therefore expected that fresh consolidation will start in the coming week and on going rally will remain continued above 5625 without sustaining below 5340.