Finally Rally continuation after follow up Consolidations in the coming Sessions
Technical Analysis,Research & Weekly Outlook
(Mar 29 to Apr 01,2016)
Nifty-EOD Chart (28-Mar-2016):- |
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1- Pull Back Rally beginning after bottom formation at 6825.80 on 29-02-2016
2- Recent top of Pull Back rally formations at 7749.40 on 28-03-2016
3- Correction of Pull Back rally beginning with recent bottom formations at 7587.70 on 28-03-2016
Inverse Head And Shoulders formations
Nifty-EOD Chart (28-Mar-2016):-
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1- Inverse Head And Shoulders pattern formations in 48 sessions with its Neckline at 7600
2- Head formation at 6825.80 on 29-02-2016
3- Neckline broken out on 21-03-2016
4- Neckline broken down with closing above it on 28-03-2016
Fibonacci Retracement levels of Post-Budget Rally
Nifty-EOD Chart (28-Mar-2016):-
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Intra Day Chart Analysis(29-03-2016)
Nifty-Intra Day Chart (28-Mar-2016):-
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1- Whole day Down moves in Bullish Falling Channels
2- Supports between 7587-7610
3- Whole day actual trading between 7587-7749
Conclusions (After Putting All Studies Together)
Pull Back Rally beginning on 29-02-2016 after Union Budget-2016 which remained continued without any deeper correction but strong intraday correction was seen on 28-03-2016 which will be seen according to following Fibonacci Retracement levels of Post-Budget Rally(6826-7749)
1- 13.0%- 7629(corrected)
2- 23.6%- 7531
3- 27.0%- 7499
4- 38.2%- 7396(Crucial)
5- 50.0%- 7287(Crucial)
6- 61.8%- 7178(Crucial)
7- 70.7%- 7096
8- 76.4%- 7043
9- 78.6%- 7023
10-88.6%- 6931
Inverse Head And Shoulders pattern formations in 48 sessions with its Neckline at 7600 and its Neckline was broken out on 21-03-2016 and Nifty remained above it in last 3 sessions of previous week but its Neckline was broken down with closing above it on 28-03-2016 therefore firstly sustaining beyond Neckline(7600) should be watched in the coming sessions because confirmation of sustaining above it will mean next target of Nifty at 8374.20. Just click following topic link to understand the calculations of mentioned target:-
Certainly view will be cautious because today Nifty moved and closed below following levels in a single day today correction:-
1- Last 3 sessions lowest(7618)
2- 13.0% retracement level(7629)
Next supports of Nifty are as follows:-
1- 7518-7568
2- 7410-7443
3- 7347-7375
Correction beginning today and no confirmation of its completion yet but whole day today Down moves were in Bullish Falling Channels and got supports also near about Neckline(7600) between 7587-7610 as well as today closing also above Neckline at 7615.10 therefore hopes are alive for fresh rally beginning after correction completion near about Neckline.
As last 3 sessions levels broken down in today crash and more consolidation is required for decisive rally above today highest as well as more down moves in consolidation process can not be ruled out therefore firstly sustaining beyond following levels should be watched for today started correction completion:-
1- Firstly sustaining beyond today supports range(7587-7610) should be watched for today started correction completion.
2- Finally 7518-7749 will decide the fate of Post Budget Pull Back Rally.
Nifty will trade and prepare between 7518-7749 in the coming sessions of this week for post RBI Credit Policy next big moves and finally valid break out of this range will decide next Trend. Still expected that finally rally above today highest(7749) will remain continued in next week after follow up consolidations between 7518-7749 despite 101 points down moves today.