Analysis for Sept 24

Nifty had a huge Runup and has closed near the 52 week High. Now to charts:

NIFTY WEEK LONG TERM CHART:

Cluster of resistance at 5700 levels.
Considering the inverted H&S/Contracting triangle breakout - Nifty is likely to reach the CHANNEL TOP near 6100++ on taking out 5740 - previous High on a closing basis.

If Resisted at Channel, then first support at 5650, next 5620. Holding above 5620, new High may be formed at 5740-50 @ this week's Channel Resistance. Break out above channel Nifty is likely to reach the larger Channel near 5850++

THREE DRIVE HARMONIC PATTERN:

Bearish Three Drives

The Bearish Three Drives is a very clear pattern. When a set-up forms three distinct price thrusts,especially after an extended rally, this pattern will indicate a potential

reversal at hand. Let’s look at the illustration

The bearish stop loss is a subjective limit. Since the Three Drives is

such a clear pattern, any substantial breakout above the third drive would

negate the pattern.

Considering the above Chart, the Symmetry of the pattern with retracements upto 50% is obvious. So between 5720 - 5740 (current week's Channel resistance), A pull back upto 50% retr. can be expected NEAR 5470 levels corresponding to the Month HEMA.
Supported at 5470 levels, Nifty would zoo.oo..om up to take out 5740 to reach 5850++ -as per weekly charts

In the Above Chart Considering the larger ABCD @,,
A = 4770
B - 5349
C- 5032
(current)D - 5720 - approx 224% retr which comes to 5740 - max retr possible of this ABCD pattern.

The 5740 levels corresponds to,

1. Week Resistance - (refer above week bar chart)
2. Week Cluster of resistance(Refer week Long term Chart)
3. 161.8% of the smaller ABCD.

When Cluster of Fibonacci numbers is formed the power of the levels are more.

SYNOPSIS:
SELL AT 5720-40 LEVELS WITH STRICT SL - 5750 EOD.
SUPPORTS AT 5620 - 30 LEVELS BELOW WHICH NIFTY WOULD BE DRAGGED FURHTER DOWN.

AGGRESSIVE BUY AT 5620 LEVELS WITH SL BELOW 5600 EOD - This range might push nifty up to rach the new target 5740.

Week Levels
CLOSE	5691
PIVOT	5665
HI EMA	5533
LOW EMA	5377
5 EMA	5497
5 SMA	5451
10 EMA	5394
PrevHigh	5720
Prev Low	5585

CHECK LIST-DAY
CLOSE	5691	HI EMA	5617
PIVOT	5663	LOW EMA	5539
prev HI	5720	50 Hr MA	5548
prev LOW	5577	100 Hr MA	5420
5EMA	5592	5 SMA	5607
10EMA	5520	10 DMA	5396
13EMA	5490	20 DMA	5313