Technical Analysis and Research For 25-09-2012
Nifty-Intra Day Chart (Sep 21 & Sep 24,2012):-
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1- Selling patterns between 5690-5704 in both previous sessions.
2- Intraday Supports also at lower levels in both previous sessions.
3- Down moves without required force on 24-09-2012
Conclusions from 2 Sessions intra day chart analysis
As both selling and lower levels minor support on 21-09-2012 therefore following lines were told on 22-09-2012 in Strong Rally continuation in the form of Impulsive Wave-3:-
1- last more than 3 hours range bound moves with intraday mixed patterns between 5668-5705 but complete distribution patterns are required for correction. Intraday charts are indicating that Nifty will firstly hover around 5668-5705 and prepare for next moves.
Next moves preparation range of 5668-5705 was given on 22-09-2012 and Nifty traded between 5663-5709 today with higher levels selling and lower levels intraday supports possibility.
Nifty-EOD Chart (24-Sep-2012):-
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1- Bearish Harami Candle formation today.
2- Indicators are overbought.
3- Gap increased in both lines of MACD and indicating down moves to converge.
4- Negative divergence in ROC and RSI.
5- Nifty trading at Upper Band of Bollinger Band.
Conclusions (After Putting All Studies Together)
All trends are up but short term Indicators are overbought after 12 sessions 505 Nifty points strong rally therefore Short term correction is due and its possibility emerged also after intraday selling patterns in both previous sessions.
As minor support possibility also seen at lower levels therefore correction beginning will get confirmation after forceful breaking down or sustaining below 5663 in the coming sessions.