Technical Analysis,Research & Weekly Outlook
(Oct 15 to Oct 19,2012)
Nifty-EOD Chart (12-Oct-2012):-
 |
| Just click on chart for its enlarged view |
Technical Patterns and Formations in EOD charts
1- Wave-2 completion and Wave-3 beginning (4770.35 on 04-06-2012)
2- Sub Wave-1 of Wave-3(5348.55 ON 10-07-2012)
3- Sub Wave-2 of Wave-3(5032.40 on 26-07-2012)
4- Sub Wave-3 of Wave-3(5448.40 on 23-08-2012)
5- Sub Wave-4 of Wave-3(5215.70 on 05-09-2012)
6- Sub Wave-5 of Wave-3 is on and its top formation at 5815.35 on 05-10-2012
7- Correction in previous week.
8- Weekly Black Candle formation
9- MACD- Given selling signal through MACD line downward intersection of Average line.
10- Bull Bear Tussle between 5639-5756 in last 3 weeks.
11- Head & Shoulders like formation in last 3 Months EOD Chart.
11- Head & Shoulders like formation in last 3 Months EOD Chart.
Conclusions from EOD chart analysis
Impulsive Wave-3 continuation with 600 Nifty points strong rally in 21 sessions from 05-09-2012 to 05-10-2012 and after that its correction followed in previous week. Nifty traded narrow between 5637-5752 in previous week and on going coorection crucial levels will be decided through Micro Analysis of previous week intraday charts:-
Nifty-Micro Analysis of 5 Sessions Intra Day Chart
(Oct 08 to Oct 12,2012)
Nifty-Intra Day Chart (Oct 08 to Oct 12,2012):-
 |
| Just click on chart for its enlarged view |
Technical Patterns and Formations in last 5 Sessions intraday charts
1- Selling between 5720-5733
2- Supports between 5640-5646
3- Follow up selling between 5700-5720 on 12-10-2012
4- Actual weekly trading range 5640-5733
Conclusions from 5 Sessions intra day chart analysis
Nifty traded sideways within 93 points in previous week with higher levels selling and lower levels buying. Firstly selling seen in the beginning of the week between 5720-5733 and after that follow up selling below this range witnessed between 5700-5720 on last Friday.
As both selling and buying in previous week therefore Indian markets are not prepared for any decisive trend and will firstly trade between previous week actual trading range(5640-5733),forceful break out or sustaining beyond this range will be next trend confirmation.
Conclusions (After Putting All Studies Together)
Very much clear that correction is on and sideways correction seen in previous week between(5640-5733). Nifty slipped within strong support range(5639-5680) after higher levels selling. As Nifty got support at lower levels of this range therefore this support strengthened in previous week but follow up selling also seen below previous selling range(5720-5733) therefore higher levels resistance has also strengthened.
As MACD has given selling signal through MACD line downward intersection of Average line and Indicators have also shown negative divergence therefore deeper correction possibility is turning higher but both buying and selling between 5640-5733 in previous week therefore firstly Bull-Bear fight will be seen within this range in the beginning of next week. As higher levels selling seen on the last day of previous week therefore expected that Indian markets will firstly slip in the beginning of next week.
Bull Bear Tussle between 5639-5756 in last 3 weeks with Head and Shoulder Bearish like formations on EOD Chart therefore breaking down of this range will certainly give deeper correction but final break out of previous 3 weeks actual trading range(5639-5756) should be firstly watched because that will give confirmation to following decisive moves:-
1- Above 5756 will mean rally continuation after completion of sideways correction.
2- Below 5639 will mean deeper correction after 21 sessions 600 Nifty points strong rally.