Nifty-Intra Day Chart(19-Sep-2011):-
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Technical Patterns and Formations in today intraday charts
1- Selling between 5050-5060
2- Buying between 5020-5030
3- Following Bullish Formations in last 4 hours:-
A- 4 Falling Channel formations
B- Break out of all falling channels
C- Bullish falling Wedge pattern formation in 3rd Falling Channel.
4- Whole day trading between 5020-5060
Conclusions
Nifty traded whole day between 40 points with minor intraday selling at higher levels and lower levels buying also but last 4 hours intraday patterns are showing consolidation patterns between 5020-5045 which has been explained above.
Global markets are crashing today and all the US and European markets are more than 2% down at this moment and more weakness may be seen tomorrow because all trends are down and good selling between 5100-5220 in Indian markets.
Although Nifty got support at lower levels and last 4 hours intraday consolidation patterns also between 5020-5045 today but global cues are most depressing therefore firstly slipping below 5020 and then sustaining below following strong supports levels will be deeper down moves confirmation:-
1- 4969-5000
2- 4912-4936
Crashing global markets and Nifty is trading between 4720-5229 for the last 29 sessions with strong supports at lower levels and good resistance at higher levels. Multiple supports and resistances between 29 session range and next moves will get confirmation from break out of any side level one by one. Final next long term trend confirmation will be sustaining beyond mentioned 29 session range and detailed analysis of this range has already been explained on September 16, 2011,which is being reproduced as follows:-
Long Term Trend Deciding 27 Sessions Range(4720-5229)
Technical Analysis and Research
Nifty-EOD Chart(15-Sep-2011):-
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Technical Patterns and Formations in EOD charts
1- Falling trendline resistance at the top of 27 sesions range.
2- 10 Months Bearish market
3- 94 Points Gap on 05-08-2011
4- 27 sessions range bound markets between 4720-5229
5- Strong resistance range is 5120-5220 within 27 days range
Conclusions
All trends are down and Indian markets are slipping for the last 10 months. Nifty opened 94 points gap down on 05-08-2011 and since then 27 sessions range bound markets between 4720-5229.
Markets always require completion consolidation for any rally after such big fall. Big rally started in March 2009 after lower level 5 monthe range bound consolidations. As range bound markets signals are emerging between 4720-5229 therefore this range break out will decide that 10 months long long term correction is over or not.Investment decisions,long term positions and Portfolio management should be done according to break out of mentioned range.
