Pull Back Rally continuation require confirmations from 7448-7479 under Volatile Global Markets
Technical Analysis,Research & Weekly Outlook
(Feb 08 to Feb 12,2016)
Waves Structure of on going Correction
Nifty-EOD Chart (05-Feb-2016):-
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1- Wave-5 completion at 9119.20 on 04-03-2015 and Wave-A of 'ABC' correction beginning after life time high formation)
2- Wave-1 of Wave-A(8269.15 on 27-03-2015)
3- Wave-2 of Wave-A(8844.40 on 15-04-2015)
4- Wave-3 of Wave-A(7997.15 on 07-05-2015)
5- Wave-4 of Wave-A(8489.55 on 22-05-2015)
6- Wave-5 of corrective Wave-A completion(7940.30 on 12-06-2015) and Wave-B beginning
7- Wave-B completion and corrective Wave-C beginning(8654.75 on 23-07-2015)
8- Wave-1 of Wave-C(7539.50 on 08-09-2015)
9- Wave-2 of Wave-C(8336.30 on 26-10-2015)
10- Wave-3 of Wave-C(7241.50 on 20-01-2016)
11- Pull back rally continuation with recent top formation at 7600.45 on 01-02-2016
Nifty-Analysis of 12 Sessions Hourly Chart
(Jan 20 to Feb 05,2016)
Nifty-Hourly Chart Day Chart (Jan 20 to Feb 05,2016):-
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1- Pull Back rally beginning at 7241.50 on 20-01-2016
2- Short Term correction beginning after Pull Back rally recent top formation at 7600.45 on 01-02-2016
3- Recent bottom formation of Short Term correction at 7350.30 on 03-02-2016 and Up moves beginning
4- Pull Back Rally Recent bottom formation near 61.8% Retracement level
5- Fresh up moves with recent top formation at 7503.15 on 05-02-2016
Nifty-Micro Analysis of Intra Day Chart
(05-Feb-2016)
Nifty-Intra Day Chart (05-Feb-2016):-
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1- More than 5 hours consolidation between 7448-7479
2- Whole day actual trading between 7407-7503
Conclusions(After Putting All Studies Together)
Detailed analysis of EOD charts have already been updated on 01-02-2016 in "Pull Back rally continuation after follow up consolidation". As no material change in Waves structure therefore not being repeated and "Waves Structure of on going Correction" is being posted now which was not done on 01-02-2016:-
'ABC' correction of that rally is on which started from 5118.85 on 28-08-2013 and completed at 9119.20 on 04-03-2015. Now Wave-3 of Wave-C continuation with recent bottom formation at 7241.50 on 20-01-2016. Although Pull back rally started from 7241.50 and its recent top formation at 7600.45 on 01-02-2016 but no confirmation of on going Long Term correction completion yet.
Correction of Pull back rally with lower levels supports near its 61.8% Retracement level in previous week and more than 5 hours consolidation between 7448-7479 was also on 05-02-2016 therefore strong indications of on going Pull Back rally continuation after its Short Term correction completion at 7350.30 on 03-02-2016.
Technically Nifty is well prepared for on going Pull Back Rally continuation towards and above its recent top(7600.45) but Global markets are most uncertain and highly volatile therefore Indian markets are also reacting them accordingly. Dow Jones slipped 211 points last Friday and if Asian markets also react negative next Monday then Indian markets may also trade weak in the beginning of next week. As more than 5 hours very good consolidation between 7448-7479 last Friday therefore until Nifty will not sustain below 7448 after such good fresh selling till then decisive down moves will not be seen.
Pull Back Rally continuation is expected but most uncertain and excessive volatile Global markets therefore firstly sustaining beyond 7448-7479 should be watched in the beginning of next week for confirmation.