Technical Analysis,Research & Weekly Outlook
(Oct 01 to Oct 05,2012)
Nifty-EOD Chart (28-Sep-2012):-
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1- Wave-1-6338.50 completed on 05-11-2010 and Wave-2 started
2- Wave-2-4531.15 completed on 20-12-2011 and Wave-3 started
3- Sub Wave-1 of Wave-3-5629.95 completed on 22-02-2012
4- Sub Wave-2 of Wave-3-4770.35 completed on 04-06-2012
5- Sub Wave-3 of Wave-3 is on
6- Doji Candle formation in weekly chart.
Conclusions from EOD chart analysis
Impulsive Sub Wave-3 of Wave-3 is on toward minimum target at 5869.15 and its minimum target calculations as per Elliot Wave Theory is as follows:-
1- Sub Wave-1 gained 1098.80 points=[(Sub Wave-1)5629.95-(Sub Wave-2)4531.15]
2- Sub Wave 2 completed at 4770.35
3- Sub Wave-3 is on from 4770.35 and as per Elliot Wave theory Wave-3 should never be shorter than both Wave-1 and Wave-5 therefore it will move minimum 1098.80 points which was gained by Sub Wave-1 and then Sub Wave-3 minimum target will be-
4- Minimum 5869.15=[4770.35(Sub Wave-3 starting point)+1098.80(Sub Wave-3 gaining minimum points)]
Weekly Outlook(Oct 01 to Oct 05,2012)
All trends are up and previous week was corrective after 12 sessions 505 Nifty points strong rally from 05-09-2012 to 21-09-2012,correction was due after such good up moves and it was seen also in previous week but correction was not deep. As many times Bullish completes correction within narrow range moves and Nifty traded also narrow within 96 between 5639-5735 in last week.
Nifty previous week closing at weekly highs and closing at 52 week high also therefore it may be first indication of correction completion within narrow range moves but weekly Doji Candle formation in last week and intraday selling at higher levels was also seen last Friday therefore correction completion confirmation is must in the beginning of next week.
Lower levels supports and higher levels selling was seen between 5639-5735 in last week and expected that Nifty will firstly trade and prepare for next moves within this range. Although expected that on going Bullish rally will remain continued but ongoing correction completion confirmation is firstly required and that will be after sustaining above previous week highs(5735) because intraday selling was seen just below it.
Firstly trading and next moves preparation between 5639-5735 in next week and should be firstly watched because sustaining it beyond will be confirmation of correction continuation / rally beginning after correction completion.