Expectations of Rally above 7777 after complete follow up Consolidations
Technical Analysis,Research & Weekly Outlook
(Apr 04 to Apr 08,2016)
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1- Down moves in Bullish Falling Channel
2- Support between 7667-7681(Immediate Supports)
3- Up moves with intraday correction.
4- Whole day actual trading between 7667-7740
Conclusions (After Putting All Studies Together)
Following lines were told on 28-03-2016 in "Finally Rally continuation after follow up Consolidations in the coming Sessions":-
1- Inverse Head And Shoulders pattern formations in 48 sessions with its Neckline at 7600
2- 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.
Following lines were told on 31-03-2016 in "Cautious View after Clear Selling Patterns Formations Today":-
1- clear selling patterns formations between 7755-7777 today
2- RBI Credit Policy on 05-04-2016 and Nifty will prepare in next 2 sessions for next decisive moves after its announcements.
3- View will be wait and watch for next 2 Pre-RBI Policy sessions
Clear selling patterns formations between 7755-7777 was told 31-03-2016 and Nifty traded whole day below it on 01-04-2016 but lower levels supports with intraday consolidation patterns were also seen on on 01-04-2016 therefore Nifty will firstly prepare in the beginning of next week near about and between 7667-7777 for next big trend after RBI Credit Policy on 05-04-2016 because immediate supports and resistances are lying within this range.
Last 8 sessions trading between 7582-7777 with lower levels supports and higher levels resistances as well as Neckline(7600) of 48 sessions Inverse Head And Shoulders pattern is lying within this range therefore once sustaining beyond this range will confirm the validity of this pattern and resultant following decisive moves will be seen beyond this range:-
1- Above 7777 will mean strong rally towards the target(8374.20) of Inverse Head And Shoulders.
2- Below 7582 will mean correction beginning confirmation of Post Budget 952 points rally and then following supports and retracement levels will be watched for its completion:-
Next supports of Nifty are as follows:-
1- 7518-7568
2- 7410-7443
3- 7347-7375
Fibonacci Retracement levels of Post-Budget Rally(6826-7777)
1- 13.0%- 7,653
2- 23.6%- 7,552
3- 27.0%- 7,520
4- 38.2%- 7,413(Crucial)
5- 50.0%- 7,301(Crucial)
6- 61.8%- 7,189(Crucial)
7- 70.7%- 7,104
8- 76.4%- 7,050
9- 78.6%- 7,029
10-88.6%- 6,934
Certainly Indian markets are going to decide next more than 5% big moves in the beginning of next week and its trigger will be RBI Credit Policy on 05-04-2016. Nifty will firstly prepare for such moves on next Monday between 7667-7777 and let it happen then next trend will get confirmations through intraday patterns formations analysis but finally rally above 7777 is still expected after complete follow up consolidations tomorrow despite negative closing on 01-04-2016 and clear selling patterns formations on 31-03-2016 because lower levels good supports in last 8 sessions and as such selling was not seen.