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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Technical Patterns and Formations in EOD charts

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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Technical Patterns and Formations in EOD charts

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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Technical Patterns and Formations in last 3 Sessions intraday charts

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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Technical Patterns and Formations in today intraday charts

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.

Pre-closing Outlook(22-05-2015)

Following lines were told today at 09;00 AM in Pre-open Outlook(22-05-2015):-

1- most Asian markets are trading with sufficiently good gains and sentiment is strong today morning
2- Nifty should trade above 8446 immediately after opening
3- otherwise possibility of Very Short Term correction will be considered
4- finally valid break out of 8383-8446 will give next decisive moves confirmations.

Nifty moved above 8446 after 10;30 AM and traded more than 3 hours between 8462-8489 but could not sustain at higher levels and slipped forcefully below 3 hours range(8462). 

As Nifty did not moved above 8446 immediately after opening and crossed it after 10;30 AM therefore possibility of selling under heated sentiments(due to  strong Asian markets) will be considered and firstly sustaining beyond 8383-8489 should be watched next trend confirmations.

Pre-open Outlook(22-05-2015)

Last 2 sessions sideways trading between 8383-8446 with lower levels good consolidation and higher levels minor selling therefore finally rally continuation expectations above 8446 are alive. As multiple resistances are lying above 8446 and Short Term Indicators have moved into over bought zone therefore follow up consolidation is must.

As most Asian markets are trading with sufficiently good gains and sentiment is strong today morning therefore Nifty should trade above 8446 immediately after opening otherwise possibility of Very Short Term correction will be considered and then finally valid break out of 8383-8446 will give next decisive moves confirmations.  

Rally Continuation expectations above 8446 are alive

Intra Day Chart Analysis & Market Outlook

(22-05-2015)

Nifty-Intra Day Chart (21-May-2015):-

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Technical Patterns and Formations in today intraday charts

1- Selling patterns formations at higher levels
2- Down moves in Bullish Falling Channels
3- Consolidation between 8383-8400
4- Whole day actual trading between 8383-8446

Conclusions from intra day chart analysis 

Following line was told today at 12:26 AM in "Rally continuation after follow up consolidation":-

1- As some selling was seen today therefore some volatility or panic bottom formation may be seen for consolidation 
2- finally rally will remain continued after follow up consolidation within and near about today trading range.

Following line was told today at 09:34 AM in "Post-open Outlook(21-05-2015)":-

1- As selling patterns formations being developed immediately after opening today
2- firstly sustaining beyond 8400 should be watched today 

As was told in above both Outlooks 100% same happened during trading hours today and Nifty traded whole day within and near about yesterday trading range as well as recovered after more than 2 hours follow up consolidation below 8400.

As some selling yesterday and again selling developed immediately after opening today therefore Nifty slipped below 8400 after 10:00 AM but consolidated more than 2 hours between 8383-8446. This range has developed immediate support and until Nifty will not sustain below today lowest(8383) till then next down moves will not be considered. 

Although some selling but good consolidation was also seen between 8383-8446 in last 2 sessions therefore rally continuation expectations above today highest(8446) are alive after follow up consolidations because following resistances are lying just above today highest:- 

1- 8431-8462
2- 8486-8502
3- 8522-8564
4- 8640-8468
5- 8690-8750 
6- 8777-8784
7- 8802-8844

Post-open Outlook(21-05-2015)

As selling patterns formations being developed immediately after opening today therefore firstly sustaining beyond 8400 should be watched today because some selling was seen yesterday also and next resistance range is just above today highest.

Rally continuation after follow up consolidation 

Intra Day Chart Analysis & Market Outlook

(21-05-2015)

Nifty-Intra Day Chart (20-May-2015):-

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Technical Patterns and Formations in today intraday charts

1- Up moves in Bearish Rising Channel
2- Selling between 8420-8433
3- Sufficient intraday corrections
4- Whole day actual trading between 8400-8440

Conclusions from intra day chart analysis 

Following line was told yesterday in Bullish markets continuation after sustaining above 8365:-

Bullish markets continuation views

As was told 100% same happened and Nifty closed 57.60 points up today.

Firstly sharp 50 points up in first 2 minutes and after that whole day sideways trading between 8400-8440 with completely mixed intraday patterns formations because both consolidation and selling patterns were seen within this range today.

2nd Resistance range between 8431-8462 was updated in previous Outlook yesterday and Nifty traded within and below this range today with intraday Mixed trading patterns formations. As consolidation patterns were also seen and Nifty traded most time more than .50% up today therefore expected that on going rally will remain continued but follow up consolidation is also required because above mentioned 2nd resistance range is lying just above today highest.

As some selling was seen today therefore some volatility or panic bottom formation may be seen for consolidation but expected that finally rally will remain continued after follow up consolidation within and near about today trading range. 

Bullish markets continuation after sustaining above 8365

Intra Day Chart Analysis & Market Outlook

(20-05-2015)

Nifty-Intra Day Chart (19-May-2015):-

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Technical Patterns and Formations in today intraday charts

1- Up moves in Bearish Rising Channel
2- 90 Points sharp fall in 20 minutes
3- Double Bottom supports at lower levels at 8336
4- Whole day actual trading between 8335-8427

Conclusions from intra day chart analysis 

Importance of 8365 was updated in following topics of last 2 sessions and today closing is exactly at 8365.65:-

1- 8365 will trigger Blasting Rally
2- High possibility of new life time high above 9119.20 after sustaining above 8365

Following lines were told yesterday in High possibility of new life time high above 9119.20 after sustaining above 8365:-

possibility of intraday or 1/2 sessions correction will be considered but it should also be kept in mind that:-

1- Many times Bull markets complete its correction and consolidate at higher levels also and much deeper correction is not seen.
2- Bull markets complete its correction time wise and not price wise.  

Higher levels correction was told yesterday and same was seen today,Nifty slipped from intraday higher levels and deeper correction was not seen today. 

As firstly more than 4 hours up moves and after that 90 Points sharp fall was seen after 02:00 PM today therefore traders should be cautious because such high volatility is being seen for the last 10 sessions and both sides Stop Loss triggering risk remains high in such huge volatility.

Following  resistances were updated on 09-05-2015 in "Pull Back Rally continuation require permission from 8224":-

1- 8230-8365
2- 8431-8462
3- 8486-8502
5- 8522-8564
6- 8640-8468
7- 8690-8750 
8- 8777-8784
9- 8802-8844

Nifty crossed 1st resistance but could not test 2nd resistance and retraced after intraday high formation at 8427.80. As Nifty faced resistance just below next resistance and Bearish Rising Channel formations was also seen just below it therefore complete follow up consolidation is firstly required for fresh rally.  

As technical positions reverses during such high today like volatility therefore final view will be formed tomorrow after the analysis of first 2/3 hours intraday charts patterns formations. Both "lower levels Double Bottom supports" and "higher levels Bearish Rising Channel formations" were seen today which means that no one sided positions formations today and Nifty has to prepare for next decisive moves which will be done in the coming sessions.

Same Bullish markets continuation views which were updated yesterday but confirmation is must through sustaining above 8365 

High possibility of new life time high above 9119.20 after sustaining above 8365

Technical Analysis and Market Outlook

(19-05-2015)

Nifty-EOD Chart (18-May-2015):-

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Technical Patterns and Formations in EOD charts

1- Bullish Inverted Head and Shoulders formations in last 15 sessions
2- Neckline of Inverted Head and Shoulders at 8365
3- Neckline broken out today

Nifty-EOD Chart (18-May-2015):-

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Technical Patterns and Formations in EOD charts

1- 15 sessions trading between 7997-8365 from 24-04-2015 to 15-05-2015
2- Nifty is hovered around 11 sessions Long Term Trend decider 200 Day EMA(today at 8192) 
3- 3 sessions broken out will get confirmation in next week and that will mean testing possibility of 15 sessions trading range top and Neckline(8365). 

Conclusions (After Putting All Studies Together)

Detailed analysis of both above charts have already been updated in following topic on 16-05-2015. Just click following topic link and go through:- 

8365 will trigger Blasting Rally

Following lines were told in above topic which proved 100% accurate after 111 Points Nifty rally today :-

1- strong indications of fresh rally after valid break out of last 3 sessions range.
2- Nifty will move above day's highest(8279)

Following lines were told in above topic which should be kept in mind:-

1- 42 Sessions correction from  04-03-2015 and 15 sessions Bullish pattern formation is time wise sufficient for correction completion
2- high possibility fresh rally above 8365 as well as new life time high formation above 9119.20 is also being considered 

8365 broken out today and only sustaining above it should be watched for the beginning of Blasting rally. As very short term indicators have moved into Over Bought zone therefore now possibility of intraday or 1/2 sessions correction will be considered but it should also be kept in mind that:-

1- Many times Bull markets complete its correction and consolidate at higher levels also and much deeper correction is not seen.
2- Bull markets complete its correction time wise and not price wise.  

Wave-1 begun from 5118.85 on 28-08-2013 and its Wave-5 completed after 18 months 4000 points rally at 9119.20 on 04-03-2015 and 'ABC' correction started. Corrective Wave-'C' completed at 7997.15 on 07-05-2015 which is just above the bottom of  Wave-5(7961.35). As Wave-5 almost completely corrected and Bullish Inverted Head and Shoulders formations at the bottom of  Wave-'C' therefore strong signals of that whole rally correction completion which started from 5118.85 on 28-08-2013. It ALSO means that Nifty is now prepared for fresh rally above life time high(9119.20) previous rally correction completion. 

Although multiple resistances between 8365-9119 but once confirmation of sustaining above 8365 will mean high possibility of fresh rally beginning towards and above new life time high(9119.20). Although no one believe it at this moment but now fresh rally above 9119.20 will be with minimum 50% gains and long term investors should keep in mind this possibility also.