Nifty Weekly for June 15-19 - Inder Bhatia

Weekly: In the above chart we seen that a major rally always corrects and retraces 38 percent to 61 percent before the next move but from the lower levels still we have seen just a one-way rally without any correction or retracement.

Daily: Nifty is facing strong resistance in the 4650-4700 zone. For the coming day we could see Nifty moving in the range of 4700-4487. Trading below 4487 we could see a sharp selloff and can test 4249-4189. The Rsi is still high and the market is in the overbought zone. On the upside 4633-4733 will act as a resistance zone.

The huge post election gap needs to be filled or partially filled. On the weekly chart we see a Long-legged Doji candlestick pattern. Long legged doji patterns suggest great amount of indecision on the market. This pattern is formed when the prices trade well above and below the day opening price, but then close almost at the same level as the opening price. It means that the end result is not different from the initial open despite the whole excitement and high volatility during the day. This implies a loss of sense of direction and that there is great amount of indecision in the market.

The Indian market opened on higher note tracking positive cues and saw selling pressure at higher levels to close in the red. On the hourly chart we are seen a Rising Wedge pattern that is a reversal pattern but still we have not cracked from a wedge pattern. For a valid pattern we have to close below 4507 levels. For the confirmation of the pattern we need to break the support line in a convincing fashion. For the coming session if Nifty trades below 4566 it may test 4521-4497 zone. On the upside trading above 4650 level we could see further move toward 4730-4750.