Bank Nifty-Levels will confirm the life of on going previous week rally
Bank Nifty Weekly Outlook
(Oct 12 to Oct 16,2020)
Bank Nifty-EOD Chart Analysis
(Corrective Waves)
Bank Nifty-EOD Chart (09-Oct-2020):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 completion after new life time high formation at 32613.1 on 30-12-2019 and Wave-A of "corrective ABC Waves" beginning
2- Corrective Wave-A completion at 16116..3 on 24-03-2020 and Wave-B beginning
3- Wave-B continuation with recent top formation at 25232.6 on 31-08-2020
4- Stochastic-%K(5) is at 92.75 & %D(3) is at 92.06
Conclusions from EOD chart analysis
(Corrective Waves)
Wave-B continuation with recent top formation at 25232.6 on 31-08-2020 and no confirmation of its completion yet.
Nifty-EOD Chart Analysis (Stochastic)
Nifty-EOD Chart (09-Oct-2020):-
Technical Patterns and Formations in EOD charts
1- Wave-B continuation with recent top formation at 25232.6 on 31-08-2020
2- Stochastic-%K(5) is at 92.75 & %D(3) is at 92.06
Conclusions from EOD chart analysis
(Stochastic)
As Short Term indicator Stochastic is completely overbought therefore Short Term correction is very much due which will start any day in next week and expected that correction may be deeper also.
Bank Nifty-Intra Day Chart Analysis
(09-Oct-2020)
Bank Nifty-Intra Day Chart (09-Oct-2020):-
Technical Patterns formation in today intraday charts
1- Up moves in Bearish Rising Channel
2- Last 4 hours sideways trading between 23551-23904
3- Whole day actual trading between 23133-23904
Conclusions from intra day chart analysis
As Global markets were strong therefore sentiment was heated hence whole day up moves were seen. Although last Friday closing was at the top of the day but firstly up moves were in Bearish Rising Channel and last 4 hours sideways trading was between 23551-23904 therefore expected that Bank Nifty will firstly trade and prepare for next decisive moves within and near about this trading range in the beginning of next week.
Finally sustaining beyond 23551-23904 will confirm next decisive moves which should be firstly watched in next week.
Conclusions
(After Putting All Studies Together)
All trends are up and Wave-B continuation with recent top formation at 25232.6 on 31-08-2020 as well as no confirmation of its completion yet.
As Short Term Indicator Stochastic is over bought therefore Short Term correction is very much due but intraday charts of previous week are not showing good selling patterns therefore immediate down moves will not be seen.
Last 4 hours sideways trading between 23551-23904 was seen last Friday and clear one sided intraday trading patterns were not seen therefore firstly sustaining it beyond should be watched in the beginning of next week for next decisive moves beginning confirmations.
Although Bank Nifty under performed most Indices in post March 2020 rally but it has out performed most Indices in previous week and clear selling patterns were not seen also therefore until complete selling patterns will not develop till then decisive down moves will not be seen and firstly sustaining beyond 23551-23904 should be watched in next week for the life of on going previous week rally.