Rally Continuation after Fresh Consolidation and Minor Intraday Correction
Technical Analysis,Research & Weekly Outlook
(Aug 03 to Aug 07,2015)
Nifty-EOD Chart (31-Jul-2015):- |
| Just click on chart for its enlarged view |
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)(Correction beginning)
7- 7940.30 on 12-06-2015(Fresh Wave-i beginning after 5 Waves correction completion)
8- Wave-i(8654.75 on 23-07-2015)
9- Wave-ii(8321.75 on 28-07-2015)
10- Wave-iii continuation with recent top formation at 8548.95 on 31-07-2015)
Conclusions from EOD chart analysis
That Wave-1 which started on 28-08-2013 from 5118.85 completed at 9119.20 on 04-03-2015 and after that its 5 waves correction started. Wave-5 of correction completed at 7940.30 on 12-06-2015 and Wave-i started after 5 waves correction completion. Now Wave-iii continuation with recent top formation at 8548.95 on 31-07-2015 after Wave-ii correction completion at 8321.75 on 28-07-2015.
Rally continuation after 5 waves correction completion
Nifty-EOD Chart (31-Jul-2015):-
 |
| Just click on chart for its enlarged view |
1- Wave-5(9119.20 on 04-03-2015)(Correction beginning)
2- Wave-1(8269.15 on 27-03-2015)
3- Wave-2(8844.40 on 15-04-2015)
4- Wave-3(7997.15 on 07-05-2015)
5- Wave-4(8489.55 on 22-05-2015)
6- Wave-1(7940.30 on 12-06-2015)(Fresh Wave-i beginning after 5 Waves correction completion)
7- Wave-i(8654.75 on 23-07-2015)
8- Wave-ii(8321.75 on 28-07-2015)
9- Wave-iii continuation with recent top formation at 8548.95 on 31-07-2015
Conclusions from EOD chart analysis
5 Waves correction begun after Wave-5 life time high formation at 9119.20 on 04-03-2015 which completed at 7940.30 on 12-06-2015 and fresh rally started which is in continuation after its 1st Short term correction completion 8321.75 on 28-07-2015. Now its Wave-iii continuation with recent top formation at 8548.95 on 31-07-2015)
Last 11 sessions Sideways market
Nifty-Intra Day Chart (Jul 16 to Jul 31,2015):-
 |
| Just click on chart for its enlarged view |
1- Selling(resistances) between 8546-8654
2- Consolidation between 8322-8384
3- 11 Sessions actual trading between 8322-8654
Conclusions from 11 Sessions intra day chart analysis
Short Term correction begun after 7 sessions selling between 8546-8654 but lower levels good consolidation within previous supports range 8322-8384 in last 4 sessions and fresh rally beginning. Strong rally was seen last Friday and next resistance between 8546-8654 was tested but closing below it at 8532.85.
11 Sessions actual trading between 8322-8654 with lower levels good consolidations and higher levels equally good selling also therefore Nifty will not easily crossed this range and will trade as well as prepare for next trend within this range in the next minimum 2/3 sessions.
Conclusions (After Putting All Studies Together)
Following supports,retracement levels and conclusions were updated in previous weekly analysis topic of "Firstly Watch 8196-8384 for correction continuation / completion";-
Supports of previous rally between 7940-8654 are as follows:-
1- 8500-8510
2- 8425-8448
3- 8310-8384
4- 8196-8250
5- 8048-8077
6- 8000-8015
7- 7940-7980
Rally between 7940-8654 will correct accordingly to following retracement levels;-
1- 13.0%-8561
2- 23.6%-8485
3- 27.0%-8461
4- 38.2%-8381(Crucial)
5- 50.0%-8297(Crucial)
6- 61.8%-8212(Crucial)
7- 70.0%-8149
8- 76.4%-8108
8- 78.6%-8092
10-88.6%-8021
As crucial retracement levels(38.2%,50.0% and 61.8%) are lying between 8212-8381 and these levels are also lying within above mentioned 3rd and 4th supports ranges(8196-8384) therefore strong possibility of on going correction completion within this supports range.
Strong possibility of on going correction completion within 8196-8384 was told and Nifty got supports within this range at 8321.75 and fresh Wave-iii begun and remain continued till last Friday after 227 points rally in last 4 sessions.
Now rally continuation but strong resistances are lying just above last Friday highest between 8546-8654 and equally good supports are also between 8322-8384 therefore Nifty will not easily cross 8322-8654 and will trade within this range in next week as well as prepare for next trend,valid break out of 8322-8654 will decide next trend
All trends are up and last 3 sessions rally continuation after lower levels good consolidation as well as as such selling patterns were not seen yet therefore rally continuation is expected but fresh consolidation is must and minor intraday correction can not be ruled out in the beginning of next week because very Short Term Indicators are over bought and strong resistances are also lying above previous week highest.