Nifty 3 Levels will confirm Wave-C beginning towards and below 7511.11
Nifty-Technical Analysis,Research
& Weekly Outlook
(Aug 17 to Aug 21,2020)
Nifty-Weekly Chart Analysis
(Corrective Waves & Stochastics)
Nifty-Weekly Chart (14-Aug-2020):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 completion after new life time high formation at 12430.50 on 20-01-2020 and Wave-A of "corrective ABC Waves" beginning
2- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
3- Wave-B continuation with recent top formation at 11373.60 on 11-08-2020
4- Stochastic-%K(5) is at 78.53 & %D(3) is at 84.43
5- Stochastic is showing negative divergence in Overbought zone
Conclusions from Weekly chart analysis
(Corrective Waves & Stochastics)
Impulsive Wave-5 completed after new life time high formation at 12430.50 on 20-01-2020 and after that Wave-A of "corrective ABC Waves" started which completed at 7511.10 on 24-03-2020. Now Wave-B continuation with recent top formation at 11373.60 on 11-08-2020 and no confirmation of its completion yet.
Although Nifty is moving up but Stochastics is showing negative divergence in Overbought zone through moving down which is strong indication of Wave-B big correction because this development is on Weekly Chart.
As %K(5) of Stochastics has also intersected downward %D(3) in overbought zone therefore emergence of correction expectations in the coming week/weeks which may deeper also because this development is on Weekly Chart.
Nifty-EOD Chart Analysis
(Trendline,Average & Indicators)
Nifty-EOD Chart (14-Aug-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 11373.60 on 11-08-2020
3- Wave-B Trend line at 10915
4- Long Term Trend decider 200-Day SMA is today at 10842
5- ROC and RSI are showing negative divergence
Conclusions from EOD chart analysis
(Trendline,Average & Indicators)
Corrective Wave-A completed at 7511.10 on 24-03-2020 and Wave-B started which is in continuation with recent top formation at 11373.60 on 11-08-2020.
Although Nifty is moving up but ROC and RSI Indicators are showing negative divergence in Overbought zone through moving down which is strong indication of Wave-B big correction.
As correction is expected therefore Wave-B Trend line(10915) and Long Term Trend decider 200-Day SMA(today at 10842) should be firstly watched in the coming week/weeks for the life of expected correction.
NiftyLast 5 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Aug 10 to Aug 14,2020):-
Technical Patterns formation in last 5 Sessions intraday charts
1- Higher levels good selling in first 4 sessions
2- Good selling between 11292-11373 in first 4 sessions
3- 4 Hours selling between 11311-11366 on 14-08-2020
4- Sharp fall on 14-08-2020
5- First 4 Sessions actual trading between 11238-11373
Conclusions from 5 Sessions
intra day chart analysis
As higher levels good selling in first 4 sessions of previous week and follow up selling on last day also therefore sharp fall was seen on last day of previous week.
As such huge selling in previous week therefore last Friday started down moves will remain continued in next week/weeks also.
Nifty Intra Day Chart
Analysis(14-Aug-2020)
Nifty-Intra Day Chart (14-Aug-2020):-
Technical Patterns formation in today intraday charts
1- 4 Hours selling between 11311-11366(Immediate Resistances)
2- Sharp fall
3- Slow up moves in last hour
4- Whole day actual trading between 11112-11366
Conclusions from
intra day chart analysis
As 4 hours good selling therefore sharp fall was seen in Mid-session. Slow up moves in last hour after minor supports at lower levels hence some up moves may be seen in the beginning of next week but until complete consolidation will not be seen till then those up moves will not be able to move or sustain above today highest(11366).
Fresh 1/2 sessions selling below 11311 will mean more down down moves below last Friday lowest(11112) and it is finally expected also in next week.
Conclusions
(After Putting All Studies Together)
1- Long term trend is up.
2- Intermediate term trend is up.
3- Short term trend has turned down after sharp fall on 14-Aug-2020.
Although Wave-b continuation and no confirmation of its completion yet but following strong indications of Wave-B completion and Wave-C beginning towards and below the origin level of Wave-B(7511.10):-
1- Last 4 sessions trading range(11238-11373) broken down forcefully on 14-Aug-2020 and higher levels good selling in last 5 sessions.
2- Stochastics on weekly chart is showing negative divergence in Overbought zone and %K(5) of Stochastics has also intersected downward %D(3).
3- ROC and RSI Indicators are showing negative divergence in Overbought zone.
4- Wave-B is more than 4 months old therefore generating a signal of time-wise correction completion.
As first indication through forceful break down of last 4 sessions trading range last Friday and Wave-B is also mature for its completion and deeper correction beginning therefore finally sustaining below following 3 levels should be watched in the coming week/weeks for Wave-B completion and Wave-C beginning towards and below 7511.11:-
1- Last 4 sessions lowest at 11238
2- Wave-B Trend line at 10915
3- Long Term Trend decider 200-Day SMA is today at 10842