Tax free Union-Budget led Rally continuation above 15000
Technical Analysis,Research & Weekly Outlook
(Feb 08 to Feb 12,2021)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (05-Feb-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- Wave-i of Wave-1(9889.05 on 30-04-2020)
3- Wave-ii of Wave-1(8806.75 on 18-05-2020)
4- Wave-iii of Wave-1(11317.80 on 28-07-2020)
5- Wave-iv of Wave-1(10882.30 on 03-08-2020)
6- Wave-v of Wave-1(11794.30 on 31-08-2020) and Wave-2 beginning
7- Wave-A of Wave-2(11185.10 on 09-09-2020)
8- Wave-B of Wave-2(11618.10 on 16-09-2020)
9- Wave-C of Wave-2(10790.20 on 24-09-2020) and Wave-3 beginning
10- Wave-i of Wave-3(12025.50 on 15-10-2020)
11- Wave-ii of Wave-3(11535.50 on 30-10-2020)
12- Wave-iii of Wave-3(14753.50 on 21-01-2021)
13- Wave-iv of Wave-3(13596.80 on 29-01-2021)
14- Wave-v of Wave-3 continuation with new life time highest top formation at 15014.65 on 05-02-2021
Conclusions from EOD chart analysis
(Waves structure)
Maximum target of previously given Waves structure was at 14754.25 but Nifty moved above it in last week therefore Waves structure has been recounted and has been done in given EOD chart.
As per new Waves structure Wave-v of Wave-3 continuation with recent top formation at 15014.65 on 05-02-2021 and no indication of its completion yet.
Nifty-EOD Chart Analysis
(Stochastic)
Nifty-EOD Chart (05-Feb-2021):-
Technical Patterns and Formations in EOD charts
1- Wave-3 continuation with new life time highest top formation at 15014.65 on 05-02-2021
2- Stochastic-%K(5) is at 95.24 & %D(3) is at 92.63
Conclusions from EOD
chart analysis (Stochastic)
Wave-3 continuation with new life time highest top formation at 15014.65 but Short Term indicator Stochastic is Overbought therefore first signal of Short Term correction beginning.
As Stochastic has not shown negative divergence and %K is also above %D as well as it has not shown negative divergence therefore Short Term correction will not be seen immediately,let these developments happen then will be seen.
Nifty-Intra Day Chart Analysis
(05-Feb-2021)
Nifty-Intra Day Chart (05-Feb-2021):-
Technical Patterns formation in today intraday charts
1- Selling between 14972-15014
2- Down moves in Bullish Falling Channel
3- Selling between 14948-14987
4- Mixed Patterns formation between 14900-14959
5- Whole day actual trading between 14865-15014
Conclusions from intra day chart analysis
Although new life time high formation above 15000 but selling developed therefore down moves were seen in first 2 hours. As these Down moves were in Bullish Falling Channel therefore some up moves developed but again follow up selling developed below 15000.
As last 2 hours trading was also with Mixed Patterns formation between 14900-14959 therefore whole day last Friday trading will be understood with Mixed Patterns formation between 14865-15014.
Firstly Nifty will have to trade and prepare for next decisive moves between 14865-15014 because both buying and selling patterns were formed within it last Friday as well as finally sustaining it beyond will confirm next decisive moves which should be firstly watched in the beginning of next week.
Conclusions
(After Putting All Studies Together)
As tax free Union-Budget on 1st Feb 2021 amid Covid-19 like huge pandemic surprised all around and Indian Stock markets also therefore strong rally was seen in previous week which closed at life time highest last Friday.
1- Long Term Trend is up.
2- Intermediate Term Trend is up.
3- Short Term Trend has turned up.
Wave-v of Wave-3 continuation with new life time highest top formation at 15014.65 on 05-02-2021 and no indication of its completion yet on EOD and intraday charts,let it happen then size of correction will be considered according to its corrective patterns formations.
As Short Term indicator Stochastic is Overbought and some selling was also seen between 14865-15014 last Friday therefore firstly follow up moves within and near this range should be watched in the coming week for Short Term correction below 14865 after fresh selling or rally continuation above 15014 after fresh consolidation.
Lot of up moves are left according to given Waves structure because now Wave-v of Wave-3 continuation but Short,Intermediate and Long Term correction is its nature and if fresh selling develops then only Short Term correction will be seen and after its completion fresh rally will be seen above 15000 which will get confirmation through sustaining beyond 14865-15014 in next week.