Technical Analysis,Research & Weekly Outlook
(May 27 to May 31,2013)
Nifty-EOD Chart (24-May-2013):-
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1- 4531.15 on 20-12-2011(Wave-i of Wave-5 beginning)
2- Wave-i(5629.95 on 22-02-2012)
3- Wave-ii(4770.35 on 04-06-2012)
4- Wave-iii(6111.80 on 29-01-2013)
5- Wave-iv(5477.20 on 10-04-2013)
6- Wave-v of Wave-5(recent top formation at 6229.45 on 20-05-2013)
7- Corrective Wave-A of 'ABC' correction beginning
Conclusions from EOD chart analysis
Long and Intermediate Term trends are up and Short Term Trend turned down after Wave-v of Wave-5 top formation at 6229.45 on 20-05-2013. 'ABC' correction is on after 752.25 points strong rally in 27 sessions from 10-04-2013 and its recent bottom formation at 5936.90 on 24-05-2013.
Nifty-Intra Day Chart (24-May-2013):-
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1- Support between 5936-5967
2- Last more than 4 hours trading between 5966-6006 with mixed patterns formations
3- Bullish Flag pattern formations in last 3 hours
4- Whole day actual trading between 5936-6006
Conclusions from intra day chart analysis
Last more than 4 hours trading between 5966-6006 with mixed patterns formations after lower levels supports but Bullish Flag pattern formations in last 3 hours also within it therefore strong indications of up moves in the beginning of next week.
Conclusions (After Putting All Studies Together)
'ABC' correction continuation in previous week after new top formation of on going rally at 6229.45 and completion of 38.2%(5941) retracement also. As 38.2% lies between strong supports range(5935-5960) therefore its importance was updated many times in previous week and Nifty made bottom formation at 5936.80 on 24-05-2013 also therefore sustaining above it should be firstly watched in next week for the beginning of impulsive Wave-B after completion of corrective Wave-A in previous week.
As lower levels supports last Friday within crucial strong supports range(5935-5960) therefore expectations of firstly up moves but good resistances below 6229 therefore broader trading range of Nifty is 5935-6229. Although confirmation are required but strong signals of impulsive Wave-B commencement and following levels should also be watched for its completion after confirmations of sustaining above 5935:-
1- 38.2%- 6047
2- 50.o%- 6117
3- 61.8%- 6143
Fresh selling near about above levels will mean strong possibility of corrective Wave-C toward new bottom below 5935.
'ABC' correction is very much on and above mentioned expected moves.levels and possibilities should always be kept in mind in whole next week.
Pre-open Outlook(27-05-2013)
As some Asian markets are in Red and some are in Green today after flat closing of US markets last Friday therefore sentiment is quiet today morning and flat opening is expected today morning. As Bullish Rising Wedge formations was seen between 5955-6008 on 23-05-2013 and support between 5936-5967 on 24-05-2013 therefore finally fresh up moves are expected today and valid break out 5936-6008 should also be firstly watched in the beginning of next week for:-
1- Impulsive Wave-B above 6008(strong possibility of this move)
2- Corrective Wave-c below 5936(but complete fresh selling is firstly required)