Nifty above 18000 till Diwali-2021
Technical Analysis,Research &
Weekly Outlook(Nov 13 to Nov 20,2020)
As new life time high formation above 12430.50 on 09-10-2020 therefore Wave have to be recounted according to Elliott Wave theory which is being done in the following Diwali-2020 Outlook
Nifty-EOD Chart Analysis (Waves structure)
Nifty-EOD Chart (10-Nov-2020):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-1 beginning from 6825.80 on 29-02-2016 after 1 financial year(2015-16) correction completion.
2- Impulsive Wave-1 completion at 8968.70 on 07-09-2016 and corrective Wave-2 beginning
3- Corrective Wave-2 completion at 7893.80 on 26-12-2016 and impulsive Wave-3 beginning
4- Impulsive Wave-3 completion at 11760.20 on 28-08-2018 and corrective Wave-4 beginning
5- Corrective Wave-4 completion at 10004.55 on 26-10-2018 and impulsive Wave-5 beginning
6-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
7- Corrective Wave-C completion at 7511.10 on 24-03-2020
8- Impulsive Wave-1 begun and now its Wave-5 is in continuation with recent top formation at 12643.90 on 10-11-2020
Conclusions from EOD chart analysis(Waves structure)
Impulsive Wave-1 begun from 6825.80 on 29-02-2016 after 1 financial year(2015-16) correction completion. Its impulsive Wave-5 completed after new life time high formation at 12430.50 on 20-01-2020 and Wave-A of "corrective ABC Waves" begun. Its corrective Wave-C completed at 7511.10 on 24-03-2020 and in this manner 29-02-2016 started Waves structure completed after it new Waves structue formed which is in continuation with recent top formation at 12643.90 on 10-11-2020
Nifty-EOD Chart Analysis (2020 Waves structure)
Nifty-EOD Chart (10-Nov-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-C completion at 7511.10 on 24-03-2020
3- Impulsive Wave-1 begun and now its Wave-5 is in continuation with recent top formation at 12643.90 on 10-11-2020
Conclusions from EOD chart analysis
(2020 Waves structure)
Impulsive Wave-5 completion after new life time high formation at 12430.50 on 20-01-2020 and Wave-A of "corrective ABC Waves" started. As Corona panic all around therefore crashing like situation developed and its corrective Wave-C completed at 7511.10 on 24-03-2020.
Waves structure which developed through Impulsive Wave-1 from 6825.80 on 29-02-2016 completed at 7511.10 on 24-03-2020 after "ABC" correction completion. After it new 2020 Waves structure formed and now it is in continuation with recent top formation at 12643.90 on 10-11-2020
Nifty-EOD Chart Analysis (2020 Correction Waves)
Nifty-EOD Chart (10-Nov-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-Wave-A (11614.50 on 03-02-2020)
3-Wave-B (12246.70 on 14-02-2020)
4-Corrective Wave-C completion at 7511.10 on 24-03-2020.
5-Impulsive Wave-1 of new Waves structure begun at 7511.10 on 24-03-2020 which is continuation
Conclusions from EOD chart analysis
(2020 Correction Waves)
"ABC" correction started after new life time high formation at 12430.50 on 20-01-2020. Its Wave-A completed at 11614.50 on 03-02-2020 and Wave-B finished at 12246.70 on 14-02-2020 but Wave-C was in crashing mode because Covid-19 panic developed Globally and sharp huge fall was seen in all the Global markets which was followed by Indian markets also.
Corrective Wave-C completed at 7511.10 on 24-03-2020 and Impulsive Wave-1 of new Waves structure started.
Nifty-EOD Chart Analysis
(2020 Rally Waves structure)
Nifty-EOD Chart (10-Nov-2020):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-C completion and Impulsive Wave-1 beginning from 7511.10 on 24-03-2020
2- Wave-1 (9889.05 on 30-04-2020)
3- Wave-2 (8806.75 on 18-05-2020)
4- Wave-3 (11794.30 on 31-08-2020)
5- Wave-4 (10790.20 on 24-09-2020)
6- Impulsive Wave-5 continuation with recent top formation at 12643.90 on 10-11-2020
Conclusions from EOD chart analysis
(2020 Rally Waves structure)
Corrective Wave-C completed and Impulsive Wave-1 of new Waves structure started from 7511.10 on 24-03-2020,its impulsive Wave-5 is in continuation now with recent top formation at 12643.90 on 10-11-2020
Nifty-EOD Chart Analysis (Stochastic)
Nifty-EOD Chart (10-Nov-2020):-
Technical Patterns and Formations in EOD charts
1- Wave-5 continuation with new life time high formation at 12643.90 on 10-11-2020
2- Stochastic- %K(5) is at 98.16 & %D(3) is at 97.67
Conclusions from EOD chart analysis (Stochastic)
Rally continuation with new life time high formation at 12643.90 but Short Term indicator Stochastic has moved into Over bought zone therefore Short Term correction has become due. As intraday charts and EOD charts have not shown any selling patterns till now therefore some more up moves can not be ruled out but expected that Short Term correction will be seen after fresh selling patterns in the next 2/3 sessions.
Conclusions (After Putting All Studies Together)
All Trends are up just before Diwali-2020 and continuous new life time high formation for the last 2 sessions in that situation when GDP IS -25.2 and whole country is in Corona pandemic grip as well as its cases have started to increase.
Main reason of strong recovery of Nifty from 7511.10 to new life time high in 2020 are as follows:-
1- Jump of profits in IT sector due to new work culture of "Work at Home" and resultant NiftyIT Index rallied 105% in only 7 months from 10992 on 19-03-2020 to 22619 on 13-10-2020.
2- As China conspired Corona therefore high Global anger against it and resultant many countries have decided to shift their companies from China to other countries and resultant many multinational companies may come and start business in India
3- "Make in India" concept will develop industrial production in India,resultant Exports and GDP will increase as well as India Rupee will also strengthen.
Although new life time high formations but Short to Long Term indicators have turned Over bought therefore correction is very much due which will be seen. As selling patterns have not been developed yet on EOD charts and intraday charts therefore immediate deeper correction will not be seen,let it happen then Short to Long Term correction will be seen but finally rally will remain continued towards and above 18000 in the coming year till Diwali-2021.