Cautious View after Clear Selling Patterns Formations Today
Intra Day Chart Analysis & Market Outlook
(01-04-2016)
Nifty-Intra Day Chart (31-Mar-2016):- |
| Just click on chart for its enlarged view |
1- Selling between 7755-7777(Immediate Resistances)
2- Whole day actual trading between 7702-7777
Conclusions from intra day chart analysis
As clear selling patterns formations between 7755-7777 today therefore it will be immediate resistance of Nifty and until Nifty will not sustain above 7777 after complete consolidation till then decisive up moves above today highest will not be seen despite flat closing today after last half hour strong recovery from lower levels.
RBI Credit Policy on 05-04-2016 and Nifty will prepare in next 2 sessions for next decisive moves after its announcements. Certainly only one day today selling is not sufficient for the correction of post Budget 952 points March 2016 rally but if follow up selling develops in next 2 sessions then deeper correction will be seen after this event.
Up moves above 7749 was told in both previous Outlooks and it was seen today but view is cautious after selling patterns formations today and until Nifty will not sustain above today highest(7777) after fresh consolidation till then immediate rally will not be considered.
View will be wait and watch for next 2 Pre-RBI Policy sessions and let follow up moves develop between 7702-7777 then next Short Term Trend will be considered according to intraday patterns formations within and near about this range and its valid break out will be confirmation of:-
1- Below 7702 will mean Post Budget rally correction beginning.
2- Above 7777 will mean Fresh strong Rally beginning after Long Term Trend and all tends turning up confirmations because Long Term Trend decider 200 Day EMA is today at 7775.