Just Watch Crucial Levels for Post FOMC Big Moves
Intra Day Chart Analysis & Market Outlook
(16-12-2015)
Nifty-Intra Day Chart (15-Dec-2015):- |
| Just click on chart for its enlarged view |
1- Mixed Patterns between 7626-7646
2- Up moves beginning after strong opening of European markets
3- Last 2 hours up moves in Bearish Rising Channel
4- Whole day actual trading between 7626-7705
Conclusions from intra day chart analysis
Although closing near the higher levels of the day but due to following reasons:-
1- After strong opening of all European market.
2- Sudden jump of Dow's Futures at 01:15 PM
As today recovery from lower levels was not on the back of consolidation but after more than 2 hours trading with Mixed Patterns formations therefore view will not be Bullish despite today closing near the higher levels of the day because last 2 hours up moves were the reaction of above mentioned Bullish Global Markets cues.
Last 5 sessions most time trading between 7620-7691 and today closing above it but on the back of strong Global cues and not due to consolidation therefore trading range break out confirmation is firstly required through sustaining above 7691.
57 sessions Head and Shoulders pattern's Neckline(7722) breaking down confirmation through last 6 sessions closing below its Neckline therefore view will not be Bullish until Nifty will not sustain above 7722 and possibility of deeper correction below on going correction lowest(7539.50) will remain alive.
Correction is on and first signal of fresh Pull Back Rally will be after sustaining above following next 2 crucial levels:-
1- Last 5 sessions most time trading range highest(7691)
2- 57 sessions Head and Shoulders pattern's Neckline(7722)
As some big moves may be seen on 17-12-2015 after FOMC announcements therefore Indian markets will prepare for those moves tomorrow and that will be understood through intraday charts patterns formation tomorrow which will be updated accordingly. As far as next trend deciding crucial levels are concerned that will be decided through sustaining beyond 7691/7722 and should be firstly watched for post FOMC big up moves and 7620/7540 for big down moves.