Firstly consolidation and then Rally continuation after good Budget

Technical Analysis,Research & Weekly Outlook

(Jul 08 to Jul 12,2019)

Nifty-EOD Chart Analysis(Modi ji's Victory gap)

Nifty-EOD Chart (05-Jul-2019):-

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Technical Patterns and Formations in EOD charts

1- 165 Points "Modi ji's Victory gap" supports formations between 11426-11591 on 20-05-2019 after Exit Polls results on 19-05-2019
2- Last 34 Sessions sideways trading between 11592-12103

Nifty-Intra Day Chart Analysis(05-07-2019)

Nifty-Intra Day Chart (05-Jul-2019):-

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Technical Patterns formation in today intraday charts

1- Selling between 11912-11981(Immediate Resistances)
2- Sharp fall after Budget
3- Mixed Patterns formation between 11798-11879
4- Whole day actual trading between 11798-11981

Conclusions from EOD chart analysis 

Although 1.14% fall on  Budget 2019-20 day last Friday but Short Term Trend is still sideways because closing was within last 34 Sessions range(11592-12103) at 11811.15.

165 Points "Modi ji's Victory gap" was formed between 11426-11591 on 20-05-2019 after Exit Polls results on 19-05-2019 and this gap is a symbol on Indian Stock markets faith on Modi ji's Government. Until this gap will not be filled up after slipping below 11426 till then big strong rally expectation will remain alive. 

Conclusions from intra day chart analysis 

As high expectations from Budget and most of the general traders have come for buying therefore huge selling on Budget expectations led heated sentiments resultant sharp fall after Budget and closing at lower levels of the day.  

As last 2 hours trading with Mixed Patterns formation between 11798-11879 therefore firstly follow up moves within and near about this range and finally sustaining beyond this range should be watched in the beginning of next week for real reaction of markets on Budget 2019-20. 

Conclusions (After Putting All Studies Together)

Waves structure of Nifty-EOD Chart was updated in previous weekly analysis and no material change since then because Nifty remained sideways within last 34 Sessions range(11592-12103) and no signal of its break out till now therefore Waves structure of Nifty-EOD Chart is not being posted in this Weekly Outlook.

Next resistance of Nifty are as follows:-

1- 11912-12000
2- 12045-12097 

Next supports of Nifty below last Friday lowest are as follows:-

1- 11642-11727(Strong supports)
2- "Modi ji's Victory gap"(11426-11591)

As good Budget(2019-20) was presented therefore finally rally will remain continued above life time highest(12103) but firstly consolidation will be seen between 11727-11912in the next few sessions because heated sentiments led huge selling developed yesterday between 11912-11981.

Watch levels also amid rally continuation expectations above life time highest 

Intra Day Chart Analysis & Market Outlook

(05-07-2019)

Nifty-Intra Day Chart (04-Jul-2019):-

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Technical Patterns formation in today intraday charts

1- Selling between 11950-11960
2- Down moves in Bullish Falling Channels
3- Whole day actual trading between 11924-11969

Conclusions from intra day chart analysis 

Following lines were told yesterday in "Firstly Watch Levels amid Economic survey led high volatility expectations":-

Although today closing near lower levels of the day after sharp fall in last hour but sufficient consolidation patterns formations also therefore expected that follow up consolidation will be seen tomorrow and finally rally is expected in next week. 

As sufficient consolidation patterns formations yesterday therefore whole day positive zone trading was seen today. Although some selling in first 2 hours but good consolidation through Down moves in Bullish Falling Channels in last hours also today therefore on going rally continuation expectations are alive despite today closing near lower levels of the day.

Following 3 resistance ranges were updated on 02-07-2019 in "Rally towards 12000 after follow up consolidation":-

1- 11842-11934(Crossed)
2- 11968-12000
3- 12045-12097 

Nifty was unable to move above 2nd resistance range bottom(11968) and slipped 30 points after making today highest at 11969.25. 

Union Budget 2019-20 tomorrow and Nifty failed to cross 2nd resistance today therefore view will be cautious because Budget led high volatility can not be ruled out tomorrow therefore next supports below today lowest should also be kept in mind:-

1- 11879-11896
2- 11815-11844
3- 11642-11727(Strong supports)
4- "Modi ji's Victory gap"(11426-11591)

Although multiple supports below today lowest but multiple resistances are also above today highest and Union Budget 2019-20 like big event by a new Finance Minister tomorrow therefore view will be cautious because Short Term Indicators have also turned overbought after last 12 sessions slow up moves.

As Indian markets have to react on Budget like big event tomorrow and Indian markets are sideways for the last 33 sessions therefore firstly sustaining beyond above levels should be watched also for next big moves confirmations amid finally rally continuation expectations above life time highest in next week.

Firstly Watch Levels amid Economic survey led high volatility expectations

Intra Day Chart Analysis & Market Outlook

(04-07-2019)

Nifty-Intra Day Chart (03-Jul-2019):-

Technical Patterns formation in today intraday charts

1- Sharp up from lower levels
2- Down moves in Bullish Falling Channel
3- Up moves in Bearish Rising Channel
4- 3 Hours Up moves with intraday corrections
5- Sharp fall in last hour
6- Whole day actual trading between 11888-11945

Conclusions from intra day chart analysis

As Indian markets have not shown strength after opening and one sided clear patterns formations were not seen also therefore following lines were told at 11:23 AM  today in "Firstly watch Levels after Global markets weakness today":-

firstly sustaining beyond 11879-11934 should be watched for next decisive moves confirmations because minor supports are above 11879 and old resistances are lying below 11934.

Nifty closed between 11879-11934 at 11916.75 today after whole day volatality within and near about this range. Although sharp fall in last hour but it will be understood a part consolidation because whole day sufficient consolidation and only minor selling was seen. As union Budget on 05-07-2019 and general traders would have come for buying in Mid-session after seeing 3 Hours Up moves therefore intraday correction of this up move was seen through sharp fall in last hour today.

Although today closing near lower levels of the day after sharp fall in last hour but sufficient consolidation patterns formations also therefore expected that follow up consolidation will be seen tomorrow and finally rally is expected in next week. 

As Economic survey led high volatility can not be ruled out tomorrow therefore firstly sustaining beyond 11815-12000 should be watched because this range will give final reaction on Budget also in the next 2/3 sessions.

Firstly watch Levels after Global markets weakness today

Post-open Outlook(03-07-2019)

Following line was told yesterday in "Rally towards 12000 after follow up consolidation":-

rally continuation is expected but follow up consolidation is firstky required near about today higher levels because last half hour quiet trading was at higher levels and resistances are lying upto 11934.

Resistances upto 11934 was told yesterday and Nifty is trading below it for the last 2 hours after today intraday highest formations in first minute at 11932.15.  

As flat trading in first 2 hours and one sided clear patterns formations have not been seen yet as well as all the Asian markets with Dow Jones's Futures are trading in negative zone since today opening therefore firstly sustaining beyond 11879-11934 should be watched for next decisive moves confirmations because minor supports are above 11879 and old resistances are lying below 11934.

Rally towards 12000 after follow up consolidation

Intra Day Chart Analysis & Market Outlook

(03-07-2019)

Nifty-Intra Day Chart (02-Jul-2019):-

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Technical Patterns formation in today intraday charts

1- Minor selling after positive opening
2- Consolidation between 11815-11844(Immediate Supports)
3- Up moves with intraday corrections
4- Last half hour quiet trading at higher levels.
5- Whole day actual trading between 11815-11917

Conclusions from intra day chart analysis 

Following lines were told yesterday in "Rally continuation after fresh consolidation":-

1- some more consolidation is required within and near about today trading range for sustaining above today highest.
2- Nifty will firstly trade and prepare for next decisive up moves within today trading range
3- finally rally will remain continued after fresh consolidation

As was told 100% same happened and firstly Nifty consolidated within and near about yesterday trading range as well as finally strong recovery was seen from lower levels.

Following 3 resistances of Nifty were updated on 29-06-2019 in "Rally above 12103 and towards 13870.95 after Budget-2019":-

1- 11842-11934
2- 11968-12000
3- 12045-12097 

As firstly lower levels consolidation and after that up moves with intraday corrections therefore rally continuation is expected but follow up consolidation is firstky required near about today higher levels because last half hour quiet trading was at higher levels and resistances are lying upto 11934.

Expected that finaly rally will remain continued towards 12000 but follow up consolidation is must because next resistances are lying between 11968-12000.

Rally continuation after fresh consolidation

Intra Day Chart Analysis & Market Outlook

(02-07-2019)

Nifty-Intra Day Chart (01-Jul-2019):-

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Technical Patterns formation in today intraday charts

1- Down moves in Bullish Falling Channels
2- Consolidation between 11851-11866
3- Up moves in Bearish Rising Channel
4- Mixed Patterns formations in last hour
5- Whole day actual trading between 11831-11884

Conclusions from intra day chart analysis 

As firstly consolidation through Down moves in Bullish Falling Channels and after that consolidation in sideways trading also therefore emergence of rally continuation expectations. Although minor selling at higher levels but Mixed Patterns formations in last hour also therefore some more consolidation is required within and near about today trading range for sustaining above today highest.

It should also be kept in mind that Indian markets completely under performed all the Global markets today and some selling on the back of Global markets led heated sentiments can not be ruled out. As lower levels good consolidation today therefore expected that Nifty will firstly trade and prepare for next decisive up moves within today trading range but expected that finally rally will remain continued after fresh consolidation within today trading range.