Sideways market and technically preparation for next big decisive moves
Technical Analysis,Research & Weekly Outlook
(Oct 05 to Oct 09,2015)
Nifty-Intra Day Chart (01-Oct-2015):- |
| Just click on chart for its enlarged view |
1- Selling between 7991-8007
2- Selling between 7954-7977
3- More than 5 hours trading between 7932-7977
3- Whole day actual trading between 7932-8007
Conclusions from intra day chart analysis
As last 27 sessions sideways trading 7540-8092 and no material in EOD charts patterns therefore just click following previous Weekly analysis topics links for:-
1- Detailed analysis of 4000 points rally EOD charts from 28-08-2013(5118.85) to 04-03-2015(9119.20)
2- Correction from 04-03-2015(9119.20) to 08-09-2015(7539.50)
3- Huge 10 months Bearish Head and Shoulders Pattern formations between 22-08-2014 and 21-08-2015 with its neckline at 7940
4- 23 Sessions actual trading between 7540-8092 from 24-08-2015 to 24-09-2015 with higher levels selling and lower levels consolidations
Topic links are as follows:-
1- Finally correction continuation towards 7104/6761(Sep 14 to Sep 18,2015)
2- Just watch 7691 for on fresh Down Moves beginning towards 7104/6761(Sep 21 to Sep 24,2015)
3- Next Trend after RBI Credit Policy will get confirmations from 23 Sessions Range
(Sep 28 to Oct 01,2015)
Previous 27 sessions trading between 7540-8092 and last 3 resistances of this range are as follows:-
1- 7995-8010
2- 8032-8055
3- 8068-8090
First resistance range was between 7995-8010 and fresh selling was seen within and below this range between 7991-8007 on 01-10-2015 and follow up selling was also seen same day between 7954-7977 therefore some down moves are expected in the beginning of next week.
As Bearish Rising Wedge formation between 7824-7957 in last hour on 30-09-2015 and more than 5 hours trading within and above this range between 7932-7977 with above mentioned selling on 01-10-2015 therefore some emergence of decisive down moves possibility also.
Technically Indian markets are well poised for Short Term down moves but Dow Jones closed 200 points up last Friday and most of the Global markets also closed with sufficient gains same day therefore some up moves with intraday volatility is expected next Monday but expected that finally Nifty will not be able to sustain above day's highest(8007) and strong possibility to slip below 7824 and towards following next supports:-
1- 7875-7898
2- 7748-7796(weaker support)
3- 7693-7720
4- 7558-7647(strong support)
As RBI has cut Repo rates by 50 BPS therefore it is big sentiment boosting and 27 sessions like long trading range(7540-8092) valid break out has power to generate next big trend as well as has trend reversal strength also therefore 7540-8092 should be watched for following next trend:-
1- Valid break out above 8090 will mean trend reversal confirmation resultant fresh rally above life time high after previous 4000 points rally(5118-9119) correction completion.
2- Valid break down below 7540 will mean correction continuation towards 7104/6761 but follow up selling is firstly required in next week because good supports are lying below previous sessions lowest(7932)
As sufficiently good supports and resistances within 27 sessions sideways trading range therefore expected that Nifty will technically prepare for next big decisive moves within this range.