Valid break out of 8595/8652 will mean Bullish Gates opening
Technical Analysis,Research & Weekly Outlook
(Jul 25 to Jul 29,2016)
Nifty-EOD Chart (22-Jul-2016):- |
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1- Impulsive Wave-1 beginning after bottom formation at 6825.80 on 29-02-2016
2- Wave-1(7992 on 28-04-2016)
3- Wave-2(7678.35 on 06-05-2016)
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(recent top formation at 8594.80 on 15-07-2016)
7- Last 10 sessions sideways trading between 8444-8595
Sideways corrections of whole Post-Budget Rally
Nifty-EOD Chart (22-Jul-2016):-
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1- Impulsive Wave-1 beginning after bottom formation at 6825.80 on 29-02-2016
2- Wave-1(7992 on 28-04-2016)
3- Wave-2(7678.35 on 06-05-2016)
4- Wave-3 continuation with recent top formation at 8594.80 on 15-07-2016
5- Sideways corrections after every 2/3 sessions up moves
6- Last 10 sessions sideways trading between 8444-8595
Last 10 sessions Intra Day Chart Analysis
Nifty-Intra Day Chart (Jul 11 to Jul 22,2016):-
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1- Last 10 sessions sideways trading between 8444-8595
Intra Day Chart Analysis(25-07-2016)
Nifty-Intra Day Chart (22-Jul-2016):-
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1- Consolidation between 8490-8510
2- Intraday correction
3- Whole day actual trading between 8490-8548
Conclusions (After Putting All Studies Together)
Trends of Nifty are as follows:-
1- Long Term Trend is up.
2- Intermediate Term Trend is up.
3- Short Term Trend is sideways for the last 10 sessions between 8444-8595.
Nifty gained 1769 points in Post Budget-2016/17 Rally from 29-02-2016 but without any deeper correction and all the corrections were seen through sideways trading. Now again Nifty is range bound between 8444-8595 for the last 10 sessions and finally sustaining it beyond will confirm deeper correction below 8444 and fresh rally beginning first indication above 8595. As immediate resistances are between 8575-8652 and Nifty faced resistance within it in previous weeks therefore next strong rally will be considered after sustaining above 8652.
Rally is very much on and finally its continuation is expected also but Oscillators are overbought and started to show negative divergence also therefore correction is very much due which will get confirmation after sustaining below 8444. As it is the peculiar character of on going rally is of only sideways corrections and no deeper correction therefore firstly sustaining beyond 8444-8652 should be watched for next decisive big moves.
As intraday consolidation patterns formations were seen last Friday therefore some up moves can not be ruled out in the beginning of next week and firstly sustaining beyond 8595/8652 should be watched in next week.
Following topic with 8 months old Huge Inverse Head and Shoulders pattern formations was updated on 10-07-2016:-
As last 10 sessions sideways trading above 8295/8398 between 8444-8595 therefore almost break out confirmation of Inverse Head and Shoulders's Neckline(8336.30) and once valid break out of 8595/8652 will mean 100% confirmation which will mean Bullish Gates opening for 9764.10 and above.
Certainly view is Bullish and only it has to be decided that immediate rally above 8595/8652 or after some more sideways trading between 8444-8595.As some correction for consolidation below 8444 can not be ruled out because Oscillators are overbought therefore valid break out of 8444-8652 should be firstly watched for next decisive moves confirmations.