Firstly Short Term Correction but Sideways Trading between 8201-8489 in Next Week
Technical Analysis,Research & Weekly Outlook
(May 25 to May 29,2015)
Nifty-EOD Chart (22-May-2015):- |
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1- 5118.85 on 28-08-2013(Wave-1 beginning after 'ABC' correction completion)
2- Wave-1(6415.25 on 09-12-2013)
3- Wave-2(5933.30 on 04-02-2014)
4- Wave-3(8626.95 on 04-12-2014)
5- Wave-4(7961.35 on 17-12-2014)
6- Wave-5(9119.20 on 04-03-2015)('ABC' correction beginning)
7- Wave-'A'(8269.15 on 27-03-2015)
8- Wave-'B'(8844.40 on 15-04-2015)
9- Wave-'C'(7997.15 on 07-05-2015)
10- 492.40 Points Pull Back rally after Wave-'C' completion with recent top formations at 8489.55 on 22-05-2015
Waves structure of 'ABC'on going correction
Nifty-EOD Chart (22-May-2015):-
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1- Wave-5 completion at 9119.20 on 04-03-2015 and 'ABC'correction beginning
2- Wave-'A'(8269.15 on 27-03-2015)
3- Wave-'B'(8844.40 on 15-04-2015)
4- Wave-'C'(7997.15 on 07-05-2015)
5- Pull Back Rally continuation with recent top formations at 8489.55 on 22-05-2015.
Nifty-Intra Day Chart (May 20 to May 22,2015):-
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1- Mixed Patterns formations between 8400-8440 on 20-05-2015
2- Consolidation between 8383-8400 on 21-05-2015
3- Mixed Patterns formations between 8400-8446 on 21-05-2015
4- More than 4 hours selling between 8460-8489 on 22-05-2015
5- 3 Sessions actual trading between 8383-8489
Conclusions from 3 Sessions intra day chart analysis
3 Sessions actual trading between 8383-8489 with lower levels consolidation below 8400 on 21-05-2015 and mixed patterns formations between 8400-8446 on 20th and 21st May but more than 4 hours selling between 8460-8489 on 22nd May therefore expected that firstly down moves will be seen in next week and Nifty will remain sideways between 8383-8489. As good selling was seen on 3rd day therefore Short Term Correction is firstly expected in the beginning of next week and if follow up selling develops and sustaining below 8383 will mean decisive down moves will be seen.
As both lower levels buying and higher levels selling in last 3 sessions between 8383-8489 therefore Nifty will firstly trade and prepare for next trend within this range and firstly sustaining it beyond should be watched for next trend confirmations in coming week.
Nifty-Intra Day Chart (22-May-2015):-
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1- More than 4 hours selling between 8460-8489(Immediate Resistances)
2- Whole day actual trading between 8421-8489
Conclusions from intra day chart analysis
Although positive closing after Green opening but more than 4 hours selling between 8460-8489 therefore expected that Short Term Correction below day's lowest(8421) will be seen in the beginning of next week.
Conclusions (After Putting All Studies Together)
Trends of Nifty are as follows:-
1- Short Term Trend is up
2- Intermediate Term Trend is down which will be up above 8505.
3- Long Term Trend is up after sustaining above its decider 200 Day EMA(today at 8201)
Following 3 Bullish developments in previous weeks
1- 15 sessions trading between 7997-8365 and this range was broken out on 18-05-2015
2- Bullish Inverted Head and Shoulders formations in 15 sessions with its Neckline at 8365 which was broken out on 18-05-2015
3- Nifty is hovered around 11 sessions Long Term Trend decider 200 Day EMA(today at 8201) and finally Nifty is sustaining above it for the last 6 sessions.
Next resistances of Nifty are as follows:-
1- 8431-8462
2- 8486-8502
3- 8522-8564
4- 8640-8468
5- 8690-8750
6- 8777-8784
7- 8802-8844
Nifty crossed 1st resistance but good selling was seen below 2nd resistance on 22-05-2015 therefore market require complete consolidation for trading and sustaining above mentioned resistances. As above mentioned 3 Bullish developments therefore good supports are lying at following levels:-
1- 8365(Neckline of Bullish Inverted Head and Shoulders)
2- 8365(Top of 15 sessions trading range)
3- 8201(Last 6 sessions sustaining above Long Term Trend decider 200 Day EMA)
As above Bullish developments therefore on going Pull Back Rally continuation was seen but Mixed Patterns(both buying and selling) formations between 8383-8489 in last 3 Sessions and more than 4 hours good selling between 8460-8489 was seen on 22-05-2015 therefore emergence of Short Term Correction possibility in the beginning of next week. Expected that Nifty will firstly slip and will trade in last 3 sessions trading range(8383-8489) as well as prepare for next trend.
Good supports below 8383 and multiple resistances above 8489 therefore Nifty will be sideways between 8201-8489 in next week and prepare for next trend as well as finally forceful break out or sustaining beyond this range will set next trend.