Fresh Bullish Moves require confirmations due to Indo-Pak border Tension
Technical Analysis,Research & Weekly Outlook
(Oct 30 to Nov 04,2016)
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1- Impulsive Wave-1 beginning after bottom formation at 6825.80 on 29-02-2016
2- Wave-1(7777.6 on 31-03-2016)
3- Wave-2(7516.90 on 11-04-2016)
4- Wave-i of Wave-3(8294.95 on 07-06-2016)
5- Wave-ii of Wave-3(7927.05 on 24-06-2016)
6- Wave-iii of Wave-3(8968.70 on 07-09-2016)
7- Corrective Wave-iv of Wave-3 continuation with recent bottom formation at 8506.20 on 17-10-2016
Bullish Flag formation in last 34 sessions
Nifty-EOD Chart (28-Oct-2016):-
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1- Impulsive Wave-1 beginning after bottom formation at 6825.80 on 29-02-2016
2- Wave-iii of Wave-3 completion at 8968.70 on 07-09-2016
3- Corrective Wave-iv of Wave-3 continuation with Bullish Flag formation in last 34 sessions between 8506-8968
Previous 3 Sessions intraday charts analysis
Nifty-Intra Day Chart (Oct 26 to Oct 28,2016):-
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1- Last 2 sessions trading with minor selling and good consolidation with lower levels supports.
2- 3 Sessions actual trading between 8597-8653
Conclusions from 3 Sessions intra day chart analysis
Although minor selling on 26th Oct but good consolidation with lower levels supports therefore strong signals of fresh and decisive up moves in the coming week.
Intra Day Chart Analysis(28-10-2016)
Nifty-Intra Day Chart (28-Oct-2016):-
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1- Up moves after minor Supports between 8582-8602
2- More than 5 hours trading with consolidation indications between 8613-8653
3- Whole day actual trading between 8582-8653
Conclusions from intra day chart analysis
As whole day only intraday consolidation patterns formations therefore strong signals of fresh up moves beginning in next week.
Conclusions (After Putting All Studies Together)
Trends of Nifty are as follows:-
1- Long Term Trend is up.
2- Intermediate Term Trend is sideways between 8477-8968 for the last 74 Sessions.
3- Short Term Trend is sideways between 8507-8728 for the last 14 Sessions.
Wave-iii of Wave-3 completion at 8968.70 on 07-09-2016 and now its corrective Wave-iv of Wave-3 continuation with Bullish Flag formation in last 34 corrective sessions which is a strong signal of fresh rally above 8968.70 without any deeper correction.
Fibonacci Retracement levels of Wave-iii of Wave-3(7927-8968) are as follows:-
1- 13.0%- 8832(Corrected)
2- 23.6%- 8722(Corrected)
3- 27.0%- 8686(Corrected)
4- 38.2%- 8570(Crucial)(Corrected)
5- 50.0%- 8447(Crucial)
6- 61.8%- 8324(Crucial)
7- 70.7%- 8232
8- 76.4%- 8172
9- 78.6%- 8149
10-88.6%- 8045
Next resistances of Nifty are as follows:-
1- 8698-8728
2- 8770-8793
3- 8854-8873
4- 8874-8902
5- 8935-8956
Next supports of Nifty are as follows:-
1- 8551-8575
2- 8582-8602
3- 8477-8580(Multiple and strong supports)
4- 8297-8343
5- 8083-8147
6- 7964-8000
Nifty has retraced up to Crucial 38.2% level(8570) in on going correction and no confirmation of on going correction completion yet. Short Term Trend is sideways between 8507-8728 for the last 14 Sessions and expected that Nifty will firstly trade within this range to prepare for next decisive moves beyond this range.
As good consolidation with lower levels supports in last 3 sessions therefore strong signals of fresh up moves above the top of last 14 sessions trading range(8507-8728). Once valid break out of 8728 will mean high possibility of on going correction completion because Crucial 38.2% retracement has been completed and Indian markets are well prepared for next strong rally after Bullish Flag formation amid on going correction.
Sentiment has turned completely nervous due to heavy firing on Indo-Pak border for the last 48 hours and fear of its escalation also therefore market may be watchful and finally sustaining above 8728 is must after follow up complete consolidation which should be firstly watched in next week.