13 Months correction after Obama visit in 2010 but 13 Sessions correction in 2015
Technical Analysis,Research & Weekly Outlook
(Feb 09 to Feb 13,2015)
13 Months Correction after Obama visit in Nov 2010
Nifty-EOD Chart (06-Feb-2015):-
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1- 2252.75 on 27-10-2008(Rally beginning after 2008 correction completion)
2- President Obama's visit between 6-11-2010 and 9-11-2010 and correction beginning after Rally completion at 6338.50 on 05-11-2010
3- 13 Months correction completion at 4531.15 on 20-12-2011
Correction started after Obama visit in Jan 2015
Nifty-EOD Chart (06-Feb-2015):-
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1- Rally continuation from 5118.85 on 28-08-2013
2- President Obama's visit between 25-01-2015 and 27-01-2015 and correction beginning after Rally completion at 8996.60 on 30-01-2015
3- Correction continuation with recent bottom formation at 8645.55 on 06-02-2015
Waves Structure of on going Wave
Nifty-EOD Chart (06-Feb-2015):-
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1- 5118.85 on 28-08-2013(Wave-i of Wave-3 beginning after 'ABC' correction completion)
2- Wave-i of Wave-3(6415.25 on 09-12-2013)
3- Wave-ii of Wave-3(5933.30 on 04-02-2014)
4- Wave-iii of Wave-3(8626.95 on 04-12-2014)
5- Wave-iv of Wave-3(7961.35 on 17-12-2014)
6- Wave-1 of Wave-v of Wave-3(8445.60 on 05-01-2015)
7- Wave-2 of Wave-v of Wave-3(8065.45 on 07-01-2015)
8- Wave-3 of Wave-v of Wave-3(8996.60 on 30-01-2015)
9- Wave-4 of Wave-v of Wave-3 continuation with recent bottom formation at 8645.55 on 06-02-2015
Nifty-Intra Day Chart (Feb 09 to Feb 13,2015):-
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1- 8 Sessions Down moves in Bullish Falling Channel
Nifty-Intra Day Chart (06-Feb-2015):-
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1- Whole day Down moves in Bullish Falling Channel
2- Whole day actual trading between 8645-8726
Conclusions (After Putting All Studies Together)
Certainly 13 months correction after Obama's visit to India in 2010 and Correction again started after 2015 visit also.. 2010 correction lasted 13 months and 2015 correction is being seen for the last 6 sessions. As high expectations from Obama visits and sentiment turned heated therefore correction started for cooling down but difference between 2010 and 2015 is that there was as such no big agreements in 2010 while big deals and most successful visit in 2015.
As 2010 correction started after 5 waves completion at 6338.50 on 05-11-2010 therefore it corrected whole that rally which 2252.75 on 27-10-2008 but at present Wave-4 of Wave-v of Wave-3 continuation and its Wave-5 is still left which should move above Wave-3 of Wave-v of Wave-3(8996.60)
Strong supports were lying at 8695 and it has been broken down on 06-02-2015 but its broken down technical confirmations is still left through:-
1- 3% down moves or
3- 3 sessions down closing.
As Intraday charts patterns of last 8 sessions are showing consolidation pattern of Down moves in Bullish Falling Channel and only minor selling patterns are seen as well as consolidation pattern of Down moves in Bullish Falling Channel was seen on 06-02-2015 therefore expected that;-
1- Nifty will not sustain below 8695
2- Correction will complete near about 8695
3- Deeper correction will not be seen.
4- Fresh rally towards new life time high will start in next week
Although after Obama visit 2010 Correction remained continued for 13 months but in 2015 correction will complete within 13 sessions.