Bullish Flag formation in last 11 sessions correction
Technical Analysis,Research & Weekly Outlook
(Jun 23 to Jun 27,2014)
Nifty-EOD Chart (20-Jun-2014):-
 |
| Just click on chart for its enlarged view |
1- Bottom formation at 5118.85 on 28-08-2013 and Wave-1 beginning
2- Wave-1(6142.50 on 19-09-2013)
3- Wave-2(5700.95 on 01-10-2013)
4- Wave-i of Wave-3(6415.25 on 09-12-2013)
5- Wave-ii of Wave-3(5933.30 on 04-02-2014)
6- Wave-iii of Wave-3(7563.50 on 16-05-2014)
7- Wave-iv of Wave-3(7118.45 on 30-05-2014)
8- Wave-v of Wave-3 continuation with new highest formation at 7700.05 on 11-06-2014
9- Bullish Flag formation in last 11 sessions correction
Conclusions from EOD chart analysis
Long and Intermediate Term Trends are up and Short Term trend remained sideways between 7488-7700 in previous weeks as well as Wave-v of Wave-3 continuation with new highest formation at 7700.05 on 11-06-2014. Bullish Flag formation in last 11 sessions correction therefore finally rally is expected above 7700 in the coming weeks despite closing near the lower levels last Friday
Nifty-Intra Day Chart (Jun 06 to Jun 20,2014):-
 |
| Just click on chart for its enlarged view |
1- 11 Sessions actual trading between 7488-7700
2- Higher levels selling in last 11 sessions
3- Lower levels buying in last 11 sessions
Conclusions from 11 Sessions intra day chart analysis
Last 11 sessions trading between 7488-7700 with higher levels selling and lower levels buying therefore sustaining beyond this range will be next big moves confirmations.
Nifty-Intra Day Chart (20-Jun-2014):-
 |
| Just click on chart for its enlarged view |
1- Up moves in Bearish Rising Channel
2- Down moves in Bullish Falling Channel
3- Whole day actual trading between 7498-7560
Conclusions from intra day chart analysis
Whole day sideways trading within 62 points with both Bullish and Bearish patterns formations therefore mixed patterns formations and valid break out of this range will be next immediate trend confirmations. As last 2 hours down moves in bigger Bullish Falling Channel therefore more expectations of finally up moves above 7560 despite closing near the lower levels of the day.
Conclusions (After Putting All Studies Together)
Following lines were told on 15-06-2014 in Sideways Market before Fresh Rally:-
Expected that Nifty will prepare for next decisive moves within 7500-7700 in the beginning of next week
As was told 99% same happened and Nifty traded between 7488-7700 in whole previous week. Supports and resistances within this range are as follows:-
1- Supports between 7488-7566
2- Resistances between 7626-7673
Sentiment turned heated after Modi's victory in parliamentary elections therefore profit booking and sideways correction in previous weeks. As civil war in Iraq and Crude rates hiked therefore most Global markets are cautious and if situation of Crude will turn worse then deeper correction will be seen otherwise expected that correction will finish near about 7488 and possibility of minor slipping below 7488 should be kept in mind.
As Bullish Flag formation in last 11 sessions correction therefore expected that finally rally will be seen after on going correction completion and deeper correction will not be seen.