Firstly Watch Next Sufficiently Strong Supports
Intra Day Chart Analysis & Market Outlook
(03-02-2016)
Nifty-Intra Day Chart (02-Feb-2016):- |
| Just click on chart for its enlarged view |
1- Firstly RBI Credit policy led high volatility
2- Last 2 hours down moves after European markets weakness and Dow's Futures more than 110 points slipping
3- Whole day actual trading between 7429-7576
Conclusions from intra day chart analysis
As 25 BPS cut in Repo rate was expected today but RBI keeps repo rate & CRR unchanged in monetary policy review therefore immediate fall after its announcement. Although some recovery was seen in mid session but again sharp fall after European markets weakness and Dow's Futures more than 110 points slipping.
It is clear that today intraday moves were completely news based and not after technical positions formations therefore final conclusions will be drawn through EOD charts and levels:-
1- Correction of that Pull Back rally is on which started on 20-01-2016 from 7242 and completed on 01-02-2016 at 7600
2- Resistances between 7552-7606 were updated in previous Outlooks and Nifty could not cross this range but sharply slipped below it after follow up selling within it yesterday
3- Next supports are between 7420-7447 and once sustaining below 7420 will mean again sharp fall towards next supports(7242-7320)
Following conclusive lines were told yesterday in "Fresh Long Positions after Today started Correction Completion" Confirmations" and being repeated for tomorrow Outlook:-
1- some more correction can not be ruled out in the coming sessions
2- Next decisive up moves will be seen after follow up consolidation and sustaining above 7640
3- let today started correction completion confirmations come then fresh long positions should be created.
As next supports are between 7420-7447 are sufficiently strong therefore firstly sustaining it beyond should be watched tomorrow for yesterday started correction continuation/completion.