Nifty IT led Rally continuation and correction only after fresh selling patterns formation
Nifty & Bank Nifty Weekly Outlook
(Jan 11 to Jan 15,2021)
Nifty-EOD Chart Analysis (Stochastic)
Nifty-EOD Chart (08-Jan-2021):-
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- Impulsive Wave-5 continuation with recent top formation at 14367.30 on 08-01-2021
3- Stochastic at %K(5) is at 74.67 & %D(3) is at 78.52
Conclusions from EOD chart analysis(Stochastic)
Impulsive Wave-5 continuation with recent top formation at 14367.30 on 08-01-2021 and no confirmation of its completion yet because no selling patterns formations on EOD charts and intraday charts.
As Short Term Indicator Stochastic has become Overbought and showing negative divergence as well as %K has intersected downward %D therefore indicating signals of Short Term correction which will be seen after selling patterns formations on Intraday and EOD charts.
Nifty-Intra Day Chart Analysis(08-Jan-2021)
Nifty-Intra Day Chart (08-Jan-2021):-
Technical Patterns formation in today intraday charts
1- Consolidation between 14230-14252
2- Consolidation between 14258-14301
3- Up moves with downward correction
4- Whole day actual trading between 14222-14367
Conclusions from intra day chart analysis
As Dow Jones Futures was trading more than 110 points up and all the Asian markets were trading with 0.90% to 02.5% gains therefore sentiment was Bullish last Friday morning hence strong opening of Indian markets.
Firstly consolidation between 14230-14252 and after that some up moves then follow up consolidation between 14258-14301 as well as last hour up moves with downward correction therefore whole day last Friday trading will be understood with consolidation hence firstly up moves above last Friday highest will be considered in the beginning of next week.
Nifty-Conclusions
(After Putting All Studies Together)
All trends are up,rally continuation and no indication of its completion yet on EOD and intraday charts.
As Short to Intermediate Term indicators have turned over bought and shown negative divergence also therefore Short to Intermediate Term correction is very much due which will be seen after selling patterns formation on both EOD and intraday charts
Bank Nifty-EOD Chart Analysis (Stochastic)
Bank Nifty-EOD Chart (08-Jan-2021):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-A completion at 16116.30 on 24-03-2020 and Wave-B beginning
2- Wave-c of Wave-B continuation with recent top formation at 32298.05 on 08-01-2021
3- Stochastic at %K(5) is at 83.52 & %D(3) is at 82.30
Conclusions from
EOD chart analysis (Stochastic)
Wave-c of Wave-B continuation with recent top formation at 32298.05 on 08-01-2021 and no confirmation of its completion yet because no selling patterns formations on EOD charts.
As Short Term Indicator Stochastic has become Overbought and showing negative divergence therefore indicating signals of Short Term correction which will be seen after complete selling patterns formations on Intraday and EOD charts.
Bank Nifty-Last 3 Sessions intraday charts analysis
Bank Nifty-Intra Day Chart (Jan 06 to Jan 08,2021):-
Technical Patterns formation in last 3 Sessions intraday charts
1- Selling(Resistances) in last 3 sessions are between:-
A- 32120-32227
B- 32093-32167
C- 32072-32150
D- 31852-31981
2- Consolidation(Supports) in last 3 sessions are
A- 31580-31772
3- 3 Sessions actual trading between 31549-32227
Conclusions from
3 Sessions intra day chart analysis
Rally continuation with its new top formation last Friday and closing also near the top of on gong rally but good selling and minor consolidation near last 3 sessions lowest.
As good selling and only little consolidation in last 3 sessions therefore if more selling develops in next week then Short Term correction will be seen below 31549. As minor buying therefore complete consolidation is firstly required for decisive up moves above 32227.
Bank Nifty-Intra Day Chart
Analysis(08-Jan-2021)
Bank Nifty-Intra Day Chart (08-Jan-2021):-
Technical Patterns formation in today intraday charts
1- Selling between 32120-32227
2- Selling between 32093-32167
3- Whole day actual trading between 32003-32227
Conclusions from intra day chart analysis
Bank Nifty traded sideways between 32003-32227 last Friday with higher levels selling therefore signalling some down moves in the beginning of next week.
Bank Nifty-Conclusions
(After Putting All Studies Together)
All trends are up,Wave-c of Wave-B continuation continuation and no confirmation of its completion yet on EOD and intraday charts.
As Short to Intermediate Term indicators have turned over bought and shown negative divergence also therefore Short to Intermediate Term correction is very much due which will be seen after complete selling patterns formation on both EOD and intraday charts
Conclusions
(After Putting All Studies Together)
As strong rally in Nifty IT therefore rally continuation forcefully in Nifty but Bank Nifty is under performing and slow up moves in last 3 sessions.
Although Short to Intermediate Term indicators have turned over bought and shown negative divergence also therefore Short to Intermediate Term correction is very much due but no selling patterns formation on both EOD and Nifty intraday charts of last Friday therefore immediate correction will not be considered.
As Bank Nifty has shown some selling in last 3 sessions therefore if more selling develop in it and in other Indices also then Bank Nifty will lead correction.
Nifty IT led Rally continuation and let fresh selling patterns develop on EOD and Intraday charts then Short to Intermediate Term correction will be considered according to the size of selling patterns formation.