Nifty-Correction expectations which may be deeper also
Technical Analysis,Research &
Weekly Outlook(Oct 12 to Oct 16,2020)
Nifty-EOD Chart Analysis
(Corrective Waves)
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 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 11938.60 on 09-10-2020
Conclusions from EOD chart analysis
(Corrective Waves)
Wave-B continuation with recent top formation at 11938.60 on 09-10-2020 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 11938.60 on 09-10-2020
2- Stochastic-%K(5) is at 92.69 & %D(3) is at 92.68
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.
Nifty-Intra Day Chart Analysis
(09-Oct-2020)
Nifty-Intra Day Chart (09-Oct-2020):-
Technical Patterns formation in today intraday charts
1- Up moves in Bearish Rising Channel
2- Selling between 11860-11938
3- Whole day actual trading between 11806-11938
Conclusions from intra day chart analysis
As Dow Jones Futures and most Global markets were trading strong therefore recovery from negative zone and closing was at the top of the day last Friday but view will not be Bullish because buying patterns were not seen and selling developed through:-
1- Firstly Up moves in Bearish Rising Channel
2- Selling patterns formations in last 4 hours.
As US markets closed strong last Friday therefore some up moves in the beginning of next week can not be ruled out and expected that Nifty will not sustain above 12000 and finally decisive down moves will be seen in next week.
Conclusions
(After Putting All Studies Together)
All trends are up and Wave-B continuation with recent top formation at 11938.60 on 09-10-2020 as well as no confirmation of its completion yet.
Although last Friday closing was at the top of Wave-B but Indian markets rally was US markets led and last 2 sessions intraday patterns are showing selling patterns formations also therefore expected that Nifty will not sustain above 12000 and correction will be seen in next week which may be deeper also because Stochastic and other Short Term indicators are overbought and suggesting that Short Term correction is very much due which may start any day.