NIFTY TECHNICAL REVIEW: 31-01-2017

Nifty opened gap down, followed by initial follow-up to the downside in the first 15 minutes.

RSI at weekly is turning flat at 60 levels.

Inside candle was made in yesterday session. No new high was made in yesterday's session and closed near the high of previous bullish candle.

We can expect nifty to consolidate within the range of the previous candle i.e. 8672- 8606 and if broke below the range , then expect some reaction to 8556 and 8489 levels.

BUDGET DAY : PRICE ACTION REVIEW FROM 2008 -2016

RELIANCE OUTLOOK: BULLISH CRAB PATTERN- 25-JAN-17

This is a hourly chart of the reliance industries, wherein , i have spotted a bullish crab pattern, suggesting a prz area of 1010-1012.

This pattern might serve as  temporary halt in the fall that started from 1097 levels.


If we look at the Daily &Weekly chart, it has been trading @ 50% retracement(i.e 1013.50)  of its previous rally from 930 to 1097, which coincides with the prz area of the crab pattern, further confirming the support.

 Immediate resistance can be seen at 1033 levels, above which 1055, 1065 are possible.

However , we should be careful trading this pattern, because , if we look at weekly chart, it has long bearish candle, which almost eroded the previous four week's gain.

Hence i am expecting only a pullback rally to 1055 or 1065 levels out of this crab pattern.

Pattern would get invalidate , if we see a close below 1010 levels.

Nifty Outlook :Enters Supply Zone- 25-Jan-2017

Currently two harmonic pattern are apparent on Index intra-charts

• ABCD Pattern 
• Crab Pattern

The Prz of  both of the patterns suggested that index could face resistance near 8542-8560 levels.

Lets move to the daily chart , which further suggests the supply zone @ 8506- 8560.

As you can see , previous price congestion was formed near 8500-8560 levels, which range was then broke to the downside, and as the per the principal of polarity, same level could now serve as resistance at least for once , for any rally to come.

As today, index  entered this zone, hence price action would really play an important role here, where  if the rally wants to continue to the upside , this zone has to be crossed decisively, other  index would again face some reaction or pullback, however as long as 8430 followed by 8250 levels are intact, the trend will remain to the upside

IMPORTANT LEVEL TO WATCH : 8560 & 8430

Nifty Opens up with a Gap: Completed Crab Pattern

As discussed in my previous post, wherein i have observed a butterfly pattern, which led this short-term reversal, and also projected a potential crab pattern, which may take nifty to 8416-8420 level in no time, considering its a impulsive extension pattern.

As expected, impulsive rally to the upside is observed in the index yesterday, closing @8475, well above resistance of 8432& 8460.

Today, we saw a gap opening @8499, and rallied to level of mentioned yesterday. i.e 8516-8520.

Now, the price action here is important to see, which will further decide , which side the momentum would flow.

Resistance to watch :  8520, 8540-8542.Support to watch :  8470, 8460, 8432

NIFTY HARMONIC REVIEW: The Powerful Butterfly On Nifty Intra

Hey guys,

Welcome to the Technical Harmonic review.

Today, i am gonna talk about the harmonic pattern that usually develop on the index.

The following is a intra-day chart of the index, where i have spotted bullish butterfly pattern, which gives me reward of approx 130 points as yet.

The prz area of the pattern stands at 8330-8328, since these are found near key market reversal points as it did in this case, where 8330 was a key reversal level as per the daily chart.

Hence this pattern was further validating the importance of 8330 levels. ( for understanding 8330 level importance check my previous post)

Do look out for such patterns that validates the important support level.

Reversal led by the Butterfly Pattern

Important levels  to watch 8516-18-20,  8469-8460.

As i can further see the probability of another harmonic pattern called Crab pattern.

The projected prz area of which is 8516-8518, which is again an important support zone as per higher degree chart.

Hence price action  should  be carefully watched  near it prz area, to grab the opportunities offered by it.

NIFTY WEEKLY CANDLE ANALYSIS

Previous Week Candle stick : Bearish Harami Candle

Weekly Range: 8460.30- 8340.95 

 Range of previous three week from the start of rally as follows

• Week-1( 25-12-16) : 303.2 
• Week-2 (01-01-17) : 173.05
• Week-3 (08-01-17): 233.30
• Week-4 (15-01-17): 119.35- smaller range from the previous 3 weeks, making it NR4 candle. ( Breakout in any direction , could start a trending rally again)

Above 8460,  index may see 8520 levels in  no time, so stay alert.

or

Below 8340, index may see 8300, 8275, 8250.

Nifty Technical Review- 19- Jan-2017

Weekly Chart

Above is a Weekly chart of Nifty.

• From this 8968.70 high , we have seen fall of about 11.70% in about 3.5 months, which took index to 7899.68 levels.
• It took support at 50% retracement .i.e. 7899.68.
• Then rallied about 7.15% in about four weeks to 8432 levels.
•  And again struggling at 50% retarcement .ie. 8432 of its previous downward rally from 8968.70 to 7899.68 levels.

Daily chart

• On Daily chart above, it can be seen struggling near 8430 levels from the past five sessions and trading in the range created by bearish black candle i.e 8460-8370.

• On the higher side supply can be seen near 8500-8560 levels, which is basically the  previous congestion zone, where index really tried hard to stay above these levels, but broke those levels in early November via gap down opening and follow-up sell-off. Hence as per the principle of polarity, these levels could serve as possible resistance zone for any rally to come at least for once.

• Further resistance would be around 8660 levels.

• 8275-8250 could serve as important Support levels.

From the past four week Index was managed to make a new high , however new high is not yet made in this week and since tomorrow is last the trading session of this week,  closing will really play an important role in determining the further trend of the index.

Important levels to watch tomorrow:

Support: 8416, 8397, 8370, 8330

Resistance: 8480, 8510, 8560

ACC_ HARMONIC ANALYSIS

The image above is of ACC Hourly Chart, which has a probability of Two Harmonic Patterns.

• AB=CD Pattern- .886- 1.13
• ALT Bat Pattern

Both of the pattern has coinciding PRZ Area, wherein Alt Bat pattern is a part of CD of Leg of the ABCD Pattern.

If both of these pattern , unfolds the way it is projected, it may see levels of 1399- 1408 levels.

Any break below 1300 would negate the projected probability.

Nifty Harmonic Analysis