Remain cautious because 16765 breaking down will confirm too much deeper correction
Technical Analysis,Research & Weekly Outlook
(Dec 20 to Dec 24,2021)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (17-Dec-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-1 completion at 11794.30 on 31-08-2020
3- Corrective Wave-2 completion at 10790.20 on 24-09-2020
4- Impulsive Wave-3 completion at 15431.8 on 16-02-2021
5- Corrective Wave-4 completion at 14151.4 on 22-04-2021
6- Impulsive Wave-5 completion after new life time top formation at 18604.50 on 19-10-2021 and corrective Wave-A of "ABC' correction beginning.
7- Correction Wave-A continuation with recent bottom formations at 16782.40 on 29-11-2021
Conclusions from EOD chart analysis
(Waves structure)
Bullish rally which started through its Impulsive Wave-1 from 7511.10 on 24-03-2020 completed from its 5th Wave after new life time top formation at 18604.50 on 19-10-2021 and corrective Wave-A of "ABC' correction begun which is in continuation with recent bottom formations at 16782.40 on 29-11-2021 and no indication of its completion yet.
Nifty-Weekly Chart Analysis
(Stochastic & MACD)
Nifty-Weekly Chart (17-Dec-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 completion after new life time top formation at 18604.50 on 19-10-2021 and corrective Wave-A of "ABC' correction beginning.
2- Correction Wave-A continuation with recent bottom formations at 16782.40 on 29-11-2021
4- Stochastic- %K(5) line has intersected %D(3) line upward and its both lines are rising within and near about Over sold zone as well as it is showing positive divergence.
5- Stochastic:- %K(5)- 31.42 & %D(3)- 24.96.
6- In MACD- MACD line has intersected Average line downward and its both lines are falling in positive zone.
7- MACD(26,12)- 448.55 & EXP(9)- 914.45 & Divergence- -465.90
Conclusions from EOD chart analysis
(Stochastic & MACD)
As in Weekly Stochastic both lines are rising within and near about Over sold zone as well as it is showing positive divergence also therefore signalling decisive up moves beginning possibilities but in MACD both lines are falling in positive zone and confirming downward trend formations also hence suggesting that finally down moves will be seen.
Nifty-Last 19 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Nov 23 to Dec 17,2021):-
Technical Patterns formation in last 19 Sessions intraday charts
1- Selling(Resistances) in last 19 Sessions are as follows:-
A- 17245-17332(Multiple strong resistances)
B- 17365-17421
C- 17552-17639
2- Consolidation(Supports) in last 19 Sessions are as follows:-
A- 16953-17011
3- Last 19 Sessions actual trading between 16783-17639
Conclusions from 19 Sessions
intra day chart analysis
As higher levels good selling developed in last 19 sessions therefore above mentioned 3 resistances ranges have emerged sufficiently stronger also therefore if fresh selling develops in next week then deeper correction will be seen after breaking down of 19 sessions trading range(16783-17639) because:-
1- only last weaker supports of previous 19 sessions are lying between 16953-17011 and
2- last Friday lowest/closing was within it also.
Nifty-Intra Day Chart Analysis
(17-Dec-2021)
Nifty-Intra Day Chart (17-Dec-2021):-
Technical Patterns formation in today intraday charts
1- 125 Points sharp fall in first 15 minutes after positive opening
2- Down moves with upward corrections
3- Support between 16997-17062
4- Slow up moves
5- Sharp down
6- Sideways trading between 16967-17002
7- Whole day actual trading between 16967-17298
Conclusions from intra day chart analysis
As 125 points sharp fall in first 15 minutes after positive opening and selling was seen through Down moves with upward corrections and slow up moves also therefore last Friday closing was near the lower levels of the day.
Although lower levels supports was also seen but higher levels good selling therefore firstly down moves are expected below last Friday lowest(16967) in the beginning of next week.
Conclusions
(After putting all studies together)
1- Long Term Trend is up.
2- Intermediate Term Trend is down.
3- Short Term Trend is down.
As good selling at higher levels in previous week therefore weekly closing was near the lowest of week with long Black candle formations which is confirming weakness in Indian markets. If fresh selling develops in the beginning of next week also then sustaining below last 19 sessions last supports(16953-17011) will mean emergence of deeper correction possibility and its confirmations will be after sustaining below previous sessions lowest(16783). Next supports below it are as follows;-
1-16722-16764(Gap support)
2-16590-16685
As last 76 sessions lowest is at 16765 and once sustaining below it will mean breaking down confirmations of such long trading range which will ascertain too much deeper correction beginning also because for it EOD chart is also suggesting through Wave-A of "ABC" correction formation hence remain cautious in the coming week/weeks.