Finally Rally towards next resistances
Nifty & Bank Nifty Weekly Outlook
(Jul 20 to Jul 24,2020)
Nifty-EOD Chart Analysis
(Wave-B structure)
Nifty-EOD Chart (17-Jul-2020):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
2- Wave-a of Wave-B(9889.05 on 30-04-2020)
3- Wave-a of Wave-B gained 2377.95 points
4- Wave-b of Wave-B(8806.75 on 16-05-2020)
5- Wave-c of Wave-B continuation with recent top formation at 10933.45 on 17-07-2020
6- 100% Fibonacci Extension Target of Wave-c of Wave-B is at 11184.70{8806.75+2377.95(100% of 2377.95)}
Conclusions from EOD chart analysis
(Wave-B structure)
Wave-c of Wave-B is very much on and no confirmation of its completion yet as well as its continuation is expected towards its next 100.0% Fibonacci Extension Target at 11184.70.
Nifty-EOD Chart Analysis
(Averages & Stochastics)
Nifty-EOD Chart (17-Jul-2020):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
2- Wave-B continuation with recent top formation at 10933.45 on 17-07-2020
3- SMA(Simple Moving Averages)
A- 5-Day SMA is at 10734
B- 13-Day SMA is at 10700
C- 55-Day SMA is at 9930
D- 200-Day SMA is at 10870
4- Stochastic-%K(5) is at 53.86 & %D(3) is at 37.03
Conclusions from EOD chart analysis
(Averages & Stochastics)
Wave-B continuation with recent top formation at 10933.45 on 17-07-2020 and no indication of its completion yet.
As %K(5) of Short Term Indicator Stochastics has intersected upward %D(3) from just above oversold zone therefore indications of more up moves in the coming week.
Short term averages are trading above longer term averages and Nifty has closed above Long Term Trend decider 200-Day SMA(today at 10870) last Friday therefore strength will be understood in Indian markets. Although Nifty has closed above Long Term Trend decider 200-Day SMA but sustaining above it must for Long Term Trend turning up confirmations which should also be watched for further decisive up moves continuation confirmations because many times corrective rally completes near about 200-Day SMA also.
Nifty-Intra Day Chart Analysis
(17-Jul-2020)
Nifty-Intra Day Chart (17-Jul-2020):-
Technical Patterns formation in today intraday charts
1- Consolidation between 10781-10840(Immediate Supports)
2- Sharp up in last hour
3- Whole day actual trading between 10749-10933
Conclusions from intra day chart analysis
As more than 5 hours consolidation between 10781-10840 therefore strong up moves were seen in last hour and until Nifty will not sustain below 10781 after complete selling till then decisive down moves will not be seen as well as up moves will be seen above last Friday highest(10933.45) after follow up consolidation between and near about 10840-10933.
Nifty-conclusions
(After Putting All Studies Together)
1- Signals of Long term trend turning up after Nifty closing above it last Friday.
2- Intermediate term trend is up
3- Short term trend is up
Next supports of Nifty are as follows:-
1- 10781-10840
2- 10630-10696
3- 10498-10535
4- 10400-10447
5- 10299-10358
6- 10224-10320
7- 10082-10133
8- 9866-9922
Next resistances of Nifty are as follows:-
1- 11036-11244(Gap resistance)
As Nifty closed at the top of Wave-B last Friday after lower levels good consolidation same day and no intraday selling patterns formations therefore rally continuation will be expected in next week. As very Short Term indicators have turned Overbought therefore very Short Term correction may be seen in the beginning of next week but finally up moves will remain continued after maximum 1/2 sessions corrections because short Term indicator has started to move up from just above Oversold zone.
100.0% Fibonacci Extension Target of Wave-B is at 11184.70 and and rally continuation is expected towards and just above it in next week. As next gap resistance is between 11036-11244 therefore firstly this range should be watched in next week/weeks because strong resistances are lying above it and once sustaining below 11036 after complete selling patterns on Intraday and EOD charts will mean strong signals of Wave-B completion and Wave-C beginning towards and below the origin of Wave-B(7511.10)
Bank Nifty-EOD Chart Analysis
(Wave-B structure & Stochastics)
Bank Nifty-EOD Chart (17-Jul-2020):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-A completion at 16116..3 on 24-03-2020 and Wave-B beginning
2- Wave-a of Wave-B completion at 21967.0 on 30-04-2020
3- Wave-b of Wave-B completion at 17105.0 on 22-05-2020
4- Wave-c of Wave-B continuation with recent top formation at 23080.6 on 08-07-2020
5- Stochastic-%K(5) is at 31.92 & %D(3) is at 18.74
Conclusions from EOD chart analysis
(Wave-B structure & Stochastics)
Wave-c of Wave-B continuation with recent top formation at 10631.30 and no confirmation of its completion yet.
As %K(5) of Short Term Indicator Stochastics has intersected upward %D(3) from oversold zone therefore indications of more up moves in the coming week.
Bank Nifty-Intra Day Chart Analysis
(17-Jul-2020)
Nifty-Intra Day Chart (17-Jul-2020):-
Technical Patterns formation in today intraday charts
1- Consolidation between 21551-21830(Immediate Supports)
2- Sharp up in last hour
3- Whole day actual trading between 21551-22065
Conclusions from intra day chart analysis
As more than 5 hours consolidation between 21551-21830 therefore strong up moves were seen in last hour and until Nifty will not sustain below 21551 after complete selling till then decisive down moves will not be seen as well as up moves will be seen above last Friday highest(10933.45) after follow up consolidation between and near about 21830-22065.
Bank Nifty-conclusions
(After Putting All Studies Together)
1- Long term trend is down
2- Intermediate term trend is sideways
3- Short term trend is sideways
Next supports of Bank Nifty are as follows:-
1- 21551-21830
2- 21030-21341
Next resistances of Bank Nifty are as follows:-
1- 22320-22502
2- 22742-22866
3- 22970-23065
As very Short Term indicators have turned Overbought therefore very Short Term correction may be seen in the beginning of next week but finally up moves will remain continued towards above mentioned resistances after maximum 1/2 sessions corrections because short Term indicator has started to move up from Oversold zone.
Bank Nifty is completely under performing Nifty and NIFTYTIT and sideways for the last 20 sessions between 20927-23080 as well as much below Long Term trend decider 200-Day SMA(today at 26176) while Nifty and NIFTYTIT have closed above it last Friday. As such weakness therefore remain cautious in Bank Nifty because much deeper and faster correction will be seen in it after corrective Wave-C beginning.
Conclusions
(After Putting All Studies Together)
Although firstly Very Short Term and intraday correction expectation in the beginning of next week but finally up moves of Wave-B will remain continued towards above mentioned next resistances.
Expected that Nifty will not be able to sustain above next resistance(11244) and Bank Nifty will also not be able to sustain above next resistance(23065) and finally corrective Wave-C will begin towards and below the origin of Wave-B(7511.10 & 16116.3) after complete selling patterns formation on intradaay and EOD charts.