48 Sessions Bullish Pattern showing Nifty target at 8374.20
Technical Analysis,Research & Weekly Outlook
(Mar 21 to Mar 23,2016)
12 Months Correction with Bullish Flag formations
Nifty-EOD Chart (18-Mar-2016):-
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1- Wave-3 on long Chart beginning at 5118.85 on 28-08-2013
2- Wave-3 completion and corrective Wave-4 beginning at 9119.20 on 04-03-2015
3- Corrective Wave-4 recent bottom of correction at 6825.80 on 29-02-2016
4- 12 Months correction with Bullish Flag formations
5- Long Term Trend decider 200 Day EMA is today at 7781
6- Upper falling line of Bullish Flag is near 200 Day EMA
Inverse Head And Shoulders formations
Nifty-EOD Chart (18-Mar-2016):-
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1- Inverse Head And Shoulders pattern formations in last 48 sessions with its Neckline at 7600
2= Head formation at 6825.80 on 29-02-2016
Pull Back Rally continuation
Nifty-EOD Chart (18-Mar-2016):-
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| Just click on chart for its enlarged view |
1- Pull Back rally beginning after getting supports at 6825.80 on 29-02-2016
2- Recent top of Pull Back rally formations at 7613.60 on 18-03-2016
3- 10 Sessions sideways trading between 7406-7585
4- 10 Sessions range broken out with closing above it at 7604.35 on 18-03-2016
Conclusions (After Putting All Studies Together)
Following conclusive lines were told in previous weekly Outlook on 13-03-2016 in "Finally Up moves after volatile trading within Crucial Levels":-
expected that in every situation(best to worst) Nifty will firstly trade between or near about 7310-7600 with high volatility and finally will move above 7600 decisively without sustaining below 7310.
As was told same happened in previous weekly Outlook,100% same happened and finally Nifty closed above 7600 with previous week lowest formation at 7405
Trends of Nifty are as follows:-
1- Short Term Trend has turned up after post budget Rally
2- Intermediate Term Trend is sideways which will be up after sustaining above 7600.
3- Long Term Trend is down which will be up after sustaining above its decider 200 Day EMA(today at 7781)
That Bullish Wave which started on 28-08-2013 from 5118.85 gained 4000 points and completed at 9119.20 on 04-03-2015 and after that its correction started which formed recent bottom at 6825.80 on 29-02-2016 then Pull Back rally begun which is in continuation with recent top formation at 7613.60 and no confirmation of its completion yet.
12 Months correction from 9119.20 to 6826 is with Bullish Flag formations and Nifty has not slipped below its lower falling line as well as strong Pull Back Rally started from Budget-2016 day which is in continuation and no signal of its completion yet. As Bullish Flag is still valid therefore fresh rally hopes above all time high(9119.20) are still alive.
Long Term Trend decider 200 Day EMA(today at 7781) and Upper falling line of Bullish Flag are near therefore once valid break out of 200 Day EMA will mean broken out confirmation of Bullish Flag also which will mean strong indication of 12 months correction completion at 6825.80 on 29-02-2016 and Indian markets are well prepared for fresh strong rally above life time high(9119.20).
Following 2 Bullish developments last Friday:-
1- 10 Sessions sideways trading between 7406-7585 and this range broken out and closing above it at 7604.35.
2- Inverse Head And Shoulders pattern formations in last 48 sessions with its Neckline at 7600 and closing above it at 7604.35.
It is confirm that once sustaining above 7600 will mean Neckline broken out confirmation which will generate fresh blasting rally to test 8374.20 according to following calculations:-
Head formation at 6825.80
Neckline of pattern is at 7600
7600-6825.80= 774.20 points distance between Head and Neckline
Neckline was broken out on 18-03-2016 with closing at 7604.35
Inverse Head and Shoulders Neckline broken out confirmation will mean next target of Nifty at 7600+774.20=8374.20
High possibility of fresh strong rally after sustaining above 7600 and Long Term Trend decider 200 Day EMA(today at 7781) as well as decisive up moves towards next strong resistances which are above 7890,also expected that Nifty will test above mentioned 48 Sessions Bullish Pattern target(8374.20) in the coming months.