Lalit Dhingra
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Nifty target at 7475.85 after China Panic and FOMC minu

Lalit Dhingra at 10:39 PM - Aug 24, 2015 ( ) Views: 1,380

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Nifty target at 7475.85 after China Panic and FOMC minutes led Global Markets Bloodbath

Technical Analysis and Market Outlook

(25-08-2015)

Nifty-EOD Chart (24-Aug-2015):-

Just click on chart for its enlarged view

Technical Patterns and Formations in EOD charts

 

1- 5118.85 on 28-08-2013(Wave-1 beginning after 'ABC' correction completion)

2- Wave-1(6415.25 on 09-12-2013)

3- Wave-2(5933.30 on 04-02-2014)

4- Wave-3(8626.95 on 04-12-2014)

5- Wave-4(7961.35 on 17-12-2014)

6- Wave-5(9119.20 on 04-03-2015 and 'ABC' correction beginning)

7- Wave-A(7940.30 on 12-06-2015) 

8- Wave-B(8654.75 on 23-07-2015)

9- Wave-C continuation with recent bottom formation at 7769.40 on 24-08-2015

 

Nifty-EOD Chart (24-Aug-2015):-

Just click on chart for its enlarged view

Technical Patterns and Formations in EOD charts

 

1- Wave-5 completion at 9119.20 on 04-03-2015 and 'ABC' correction beginning after life time high formation)

2- Wave-A(7940.30 on 12-06-2015) 

3- Wave-A corrected 1178.90 Points

4- Wave-B(8654.75 on 23-07-2015)

5- Wave-B has corrected 985.35 Points till today

6- Wave-C continuation with recent bottom formation at 7769.40 on 24-08-2015

 

Conclusions from EOD charts analysis 

 

As China currency(Yuan) surprise devaluation therefore panic in all Global financial markets and Minutes from the FOMC Reserve's last policy meeting on 19-08-2015 also showed that the central bank was "approaching" its rate hike therefore down moves started in all the Global markets in previous week. Finally Dow Jones 531.14 crashing last Friday triggered panic in all the Global markets today morning and resultant:-

 

1- All the Asian markets started to crash immediately after opening and most of them closed 4% to 8% down.

2- Dow's Futures also traded more than 400 points down.

3- Most European markets traded more than 3% down immediately after opening. 

 

As such Global markets crash therefore whole day down moves after huge gap down opening was seen in Indian markets today and all the trends turned down after forcefully slipping below Long Term Trend decider decider 200 Day EMA(last Friday at 8292) 


That rally which started on 28-08-2013 from 5118.85 completed at 9119.20 on 04-03-2015 and after that its 'ABC' correction started which is now in continuation. Fibonacci Retracement levels of rally between 5118.85-9119.20 are as follows:-

 

1- 13.0%- 8598(Retraced)

2- 23.6%- 8174(Retraced)

3- 27.0%- 8038(Retraced)

4- 38.2%- 7590(Crucial)

5- 50.0%- 7118(Crucial)

6- 61.8%- 6646(Crucial)

7- 70.0%- 6290

8- 76.4%- 6062

8- 78.6%- 5974

10-88.6%- 5574

 

Calculation of next target of Nifty at 7475.85:-

 

Wave-A corrected 1178.90 Points and now Wave-C continuation which has retraced 985.35 Points till today. If Wave-C corrects 100% of Wave-A then it may move down upto:- 


7475.85=8654.75(Wave-B completed and Wave-C started)-1178.90(Wave-A corrected)


Now Wave-C of 'ABC' correction is in continuation and let market completely consolidate on EOD/weekly charts then its completion will be considered,till then its continuation will be seen according to above mentioned retracement levels. 

 

As Short Term indicators have turned oversold and selling markets remains highly volatile also therefore a strong Pull Back Rally can not be ruled out any day but finally correction continuation towards next target(7475.85) will be seen.


(1 to 5 out of 5) - Latest Replies on Top | First | << Previous | Next >> | Last |
Paresh Kamani at 06:55 PM - Aug 25, 2015 ( )

how much can be the pull back rally

Sankalp Bhoir at 11:17 PM - Aug 24, 2015 ( )

very good analysis Cool Tongue out

1 to 5 out of 5

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