Diwali Muhurat trading Outlook(26-10-2011)
Nifty-EOD Chart(25-Oct-2011):-
Technical Patterns and Formations in EOD charts
1- Firstly 9 months Correction from Muhurat Trading on 05-11-2010 at 6338.50
2- 94 points gap down on 05-08-2011(5323-5229)
3- After that 54 sessions range bound market between 4720-5229.
4- Closing at the top of 54 sessions on 25-10-2011
Conclusions
Correction commenced from Muhurat Trading on 05-11-2010 at 6338.50 and after 9 months correction Indian markets are range bound between 4720-5229 for the last 54 sessions. It is the character of financial markets that sometimes they are used to turn range bound and prepare for decisive strong move. Indian markets remained range bound 5 months after 2008 crashing like correction and after that more than 3800 Nifty points rally was seen from March 2009.
Nifty closed at the top of 54 sessions range after strong rally yesterday and correction completion possibilities have also emerged. Muhurat Trading-2011 will be seen in the strong sentiment and also in expectation of strong rally after 54 sessions correction completion.
Last 54 sessions trading range high is at 5229 and expected that finally Indian markets will cross and sustain above it but confirmation is must and that will be after the filling of 94 points gap 05-08-2011 and crossing of gap high at 5323.
As sentiment is heated therefore very short term correction is expected and if Nifty does not sustain below 5160 in expected correction and cross as well as sustain above 5229 then 54 sessions range bound market break out confirmation will be after filling of 5th Aug 2011 gap and crossing 5323.
Indian markets will trade in most heated sentiment during Muhurat Trading today therefore profit booking may be seen and should wait for correction completion before investment. Sentiment is celebrating Diwali after yesterday blasting up moves therefore next moves confirmation should be drawn from following 2 ranges:-
1- 5180-5220(First indication)
2- 5160-5240(Confirmation)
Nifty-EOD Chart(25-Oct-2011):-
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| Just click on chart for its enlarged view |
1- Firstly 9 months Correction from Muhurat Trading on 05-11-2010 at 6338.50
2- 94 points gap down on 05-08-2011(5323-5229)
3- After that 54 sessions range bound market between 4720-5229.
4- Closing at the top of 54 sessions on 25-10-2011
Conclusions
Correction commenced from Muhurat Trading on 05-11-2010 at 6338.50 and after 9 months correction Indian markets are range bound between 4720-5229 for the last 54 sessions. It is the character of financial markets that sometimes they are used to turn range bound and prepare for decisive strong move. Indian markets remained range bound 5 months after 2008 crashing like correction and after that more than 3800 Nifty points rally was seen from March 2009.
Nifty closed at the top of 54 sessions range after strong rally yesterday and correction completion possibilities have also emerged. Muhurat Trading-2011 will be seen in the strong sentiment and also in expectation of strong rally after 54 sessions correction completion.
Last 54 sessions trading range high is at 5229 and expected that finally Indian markets will cross and sustain above it but confirmation is must and that will be after the filling of 94 points gap 05-08-2011 and crossing of gap high at 5323.
As sentiment is heated therefore very short term correction is expected and if Nifty does not sustain below 5160 in expected correction and cross as well as sustain above 5229 then 54 sessions range bound market break out confirmation will be after filling of 5th Aug 2011 gap and crossing 5323.
Indian markets will trade in most heated sentiment during Muhurat Trading today therefore profit booking may be seen and should wait for correction completion before investment. Sentiment is celebrating Diwali after yesterday blasting up moves therefore next moves confirmation should be drawn from following 2 ranges:-
1- 5180-5220(First indication)
2- 5160-5240(Confirmation)
