Technical Analysis and Research For 08-05-2012
Nifty-EOD Chart (07-May-2012):-
 |
| Just click on chart for its enlarged view |
1- Wave-1 1098.80 Nifty Points rally in 45 sessions
2- Wave-2 52 Sessions correction in Falling Channel(Bullish Flag Formation)
3- Wave-2 Three Lower Tops and Three Lower Bottoms Formation during correction.
4- Wave-2 Fifth Wave formation during correction.
Conclusions from EOD chart analysis
As B3 was not completed therefore following lines were told in "Lower Tops and Lower Bottoms Formation In On Going Correction" on 15-04-2012
"Correction is on and its completion is required yet. As lower tops and lower bottoms formations in on going correction therefore new bottom B3 formations possibility below 5135.95 can not be ruled out in the coming week/weeks"
After B3 formation- 3 Lower Tops and 3 Lower Bottoms are as follows:-
T1(5629.95)
T2(5499.40)
T3(5378.75)
B1(5171.45)
B2(5135.95)
B3((completion indication at 4988.00 on 07-05-2012)
Technical requirement of 'B3' formation has been completed after after slipping below 5135.95. Now 5th and final corrective Sub wave is continued during 52 Sessions correction and its completion indication is also seen after strong recovery from lower levels on 07-05-2012.
Wave-2 correction is in "Falling Channel(Bullish Flag Formation)" therefore it is confirm that impulsive Wave-3 will be seen after its completion. As Sub Wave-5 is on and technical requirement of 'B3' formation has been completed in on going correction therefore now Indian markets are very much prepared for impulsive Wave-3 rally. Wave-3 can never be shorter than Wave-1 therefore more than Wave-1 gains will be seen after correction completion.
Strong indication of correction completion after more than 2% recovery from lower levels on 07-05-2012 and only its confirmation is required which will be after sustaining above following levels and resistances;-
1- 200-Day SMA(Today at 5115)
2- Resistance between 5190-5305
3- Resistance between 5318-5337
4- Resistance between 5357-5377
Although multiple resistances upto 5625 but sustaining above 5377 will be confirmation of strong Wave-3 rally.Expected that Nifty will not slip below 4988 and Wave-3 rally will be seen above 5115/5377/5625.
Pre-open Outlook(08-05-2012)
Strong rally yesterday after intraday consolidation patterns between 4990-5021 and intraday supports at lower levels between 4990-5000 as well as no indication of short covering or selling yesterday. No specific direction from Global markets and sentiment is also quiet today morning therefore flat opening and slipping during consolidation process is possible but expected that up moves will remain continued and finally positive closing will be seen.