Fate of Sub Wave-3 in the hands of FOMC & Land acquisition Bill
Technical Analysis and Market Outlook
(18-03-2015)
Nifty-Intra Day Chart (17-Mar-2015):- |
| Just click on chart for its enlarged view |
1- Consolidation between 8667-8684
2- Consolidation between 8630-8656
3- Minor selling between 8713-8735
4- Complete intraday correction
5- Sharp Recovery in last Hour
6- Whole day actual trading between 8630-8742
Conclusions from intra day chart analysis
Although Nifty closed in Red at the lowest of on going correction yesterday but we were not Bearish therefore we told following lines yesterday in Pre-open Outlook(17-03-2015):-
1- intraday charts are showing good consolidation patterns formations
2- today lowest will work as good Support
3- high possibility of Bounce back tomorrow
4- Once sustaining above 8672 will be first indication of rally after correction completion
As was told yesterday 100% same happened today and Bounced Back was seen as well as Nifty closed 90 Points up today.
Highly volatile day today with Nifty closing much above the neckline(8672) of 20 Sessions Bearish Head and Shoulders pattern at 8723.30 today and if Nifty sustain above 8672 then Bearish Head and Shoulders pattern will be understood whipsaw and will be first indication of rally after correction completion.
Sub Wave-2 of Wave-5 of Wave-v of Wave-3 continuation with recent bottom formation at 8612 on 16-03-2015. As very good consolidation was seen at lower levels of on going correction between 8612-8648 on 16-03-2015 therefore emergence of Sub Wave-3 beginning possibility and its formation confirmation will mean new life time high formations above the top of Sub Wave-1(9119.20).
Next resistances of Nifty are as follows:-
1- 8747-8760
2- 8805-8825
3- 8920-8943
4- 9045-9081
As resistances are just above today closing and highest therefore follow up fresh consolidation with sustaining above 8760 is firstly required for next strong indication of fresh rally after correction completion because 21 Day EMA is also at 8760 and Nifty got strong supports near 55 Day EMA on 16-03-2015.
As very Short Term indicators are Over bough after strong recovery in last hours today therefore very short term/intraday correction is due for tomorrow. Resistances are above today closing and supports below today closing therefore Nifty may turn sideways tomorrow because Nifty has to prepare also for following news also:-
1- FOMC will declare its views on Rates hike
2- Govt stand on Land acquisition Bill in Rajya Sabha( If Govt opts for Bill passing through joint session of Parliament then will be good news for market and if goes for select committee then will be a jolt for market.
Sub Wave-3 beginning indications and both above news outcome will decide its fate. Let Nifty prepare for next big moves then will firstly understood from tomorrow intraday charts patterns formations and will be updated accordingly.