Deeper correction towards 

next supports

Technical Analysis,Research & Weekly Outlook

(Jan 17 to Jan 21,2022)

Nifty-EOD Chart Analysis

(Waves structure)

Nifty-EOD Chart (14-Jan-2022):-

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- Corrective Wave-A of "ABC" correction completion at 16410.20 on 20-12-2021

8- Wave-B continuation with recent top formation at 18286.95 on 14-01-2022 and no confirmation of its completion yet.    

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 completed at 16410.20 on 20-12-2021.

Now Wave-B continuation with recent top formation at 18286.95 on 14-01-2022 and no confirmation of its completion yet on EOD charts.

Nifty-EOD Chart Analysis

(Stochastic & MACD)

Nifty-EOD Chart (14-Jan-2022):-

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- Corrective Wave-A of "ABC" correction completion at 16410.20 on 20-12-2021

3- Wave-B continuation with recent top formation at 18286.95 on 14-01-2022 and no confirmation of its completion yet.     

4- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling in bought zone.

5- Stochastic is showing negative divergence 

6- Stochastic:- %K(5)- 96.69 & %D(3)- 95.97.

7- In MACD- MACD line has intersected Average line upward and its both lines are rising in positive zone.

8- MACD(26,12)- 550.41 & EXP(9)- 314.89 & Divergence- 235.52

Conclusions from EOD chart analysis

(Stochastic & MACD)

As in Stochastic both lines are kissing in over bought zone and this indicator is in over bought zone since long therefore if down moves starts then sharp fall will be seen in next week. 

As in MACD MACD line has intersected Average line upward and its both lines are rising in positive zone therefore it showing upward trend formations.

Conclusion from these 2 indicators is that Short Term correction is very much due which will start any day in next week but will not be deep because in MACD both lines are rising in positive zone and its has not given any indication of downward trend formation.

Nifty-Intra Day Chart Analysis

(14-Jan-2022)

Nifty-Intra Day Chart (14-Jan-2022):-

Technical Patterns formation in today intraday charts

1- 137 Points sharp fall in first 3 minutes

2- More than 110 points jump from lower levels in first 40 Minutes

3- Down moves with upward corrections

4- Up moves in Bearish Rising Channels

5- Whole day actual trading between 18120-18286

Conclusions from intra day chart analysis 

Although firstly 137 points sharp fall in first 3 minutes but after that more than 110 points jump also from lower levels in first 40 Minutes therefore first hour trading was highly volatile last Friday

As firstly down moves were with upward corrections and after that whole day up moves were in Bearish Rising Channels therefore good intraday selling patterns formations last Friday hence expected that down moves will be seen below last Friday in the beginning oof next week. 

Conclusions

(After putting all studies together)

All the trends are up and Wave-B continuation with recent top formation at 18286.95 on 14-01-2022 and no confirmation of its completion yet on EOD charts.

As short Term indicator Stochastic is in over bought zone since long and its both lines are kissing therefore emergence of Short Term correction beginning strong indications which will start any day in next week.

Union Budget 2022 is scheduled on 01-02-2022 and on going rally is on the back of market favouring Budget. Last 20 sessions rally which started from 16410.20 and on 20-12-2021 is in continuation without any significant correction. As Short Term indicators are completely overbought and good intraday selling patterns formations also last Friday therefore expected that deeper correction will be seen towards following supports in next week:-

1- 17965-18025

2- 17902-17945

3- 17740-17788

4- 17657-17721

5- 17332-17371

6- 17192-17241

18119 will confirm correction 

beginning of on going rally

Post-open Outlook(14-01-2022)

As Dow Jones closed 176 points down yesterday therefore most Asian markets were trading more than 0.65% down and resultant sentiment turned weaker hence gap down opening of Indian markets.

As selling patterns were not seen and consolidation patterns were formed yesterday therefore Nifty recovered more than 110 points from lower levels in first 40 Minutes and fresh selling patterns formations today will mean first signal of correction beginning.

Last 2 sessions trading between 18129-18272 and today first 3 minutes lowest is below it at 18119.65 therefore firstly sustaining beyond 18119 should also be watched in the coming sessions for correction beginning confirmation of that on going rally which started from 16410.20 on 20-12-2021. 

Rally on Union Budget expectations

Nifty-Intra Day Chart Analysis & 

Market Outlook(14-01-2022)

Nifty-Intra Day Chart (13-Jan-2022):-

Technical Patterns formation in today intraday charts

1- Down moves in Bullish Falling Channels

2- Consolidation between 18211-18222 

3- Sharp up moves in last half hour

4- Whole day actual trading between 18164-18272

Conclusions from intra day chart analysis 

Although positive opening but down moves were seen after that. As whole day down moves were in Bullish Falling Channels and consolidation was also seen between 18211-18222 therefore sharp up moves developed in last half hour.

As Union Budget will be tabled in Parliament on 01-02-2022 therefore Indian markets are preparing for post Budget decisive one sided moves hence moving up on post Budget expectations. As whole day consolidation today therefore up moves will be seen tomorrow and let selling develop then correction will be considered according to the size of selling patterns formations but remain cautious because Short Term indicators are Over bought and correction may also begin any day after fresh selling patterns formations.

 Sustaining beyond 18161-18227 will confirm Indian markets reaction on 3 IT big quarterly results 

Nifty-Intra Day Chart Analysis & 

Market Outlook(13-01-2022)

Nifty-Intra Day Chart (12-Jan-2022):-

Technical Patterns formation in today intraday charts

1- 5 Hours sideways trading between 18161-18227

2- Whole day actual trading between 18129-18227

Conclusions from intra day chart analysis 

As most Asian markets were trading with more than 1.5% gains after strong closing of US markets yesterday therefore gap up opening of Indian markets and Nifty traded 5 hours sideways between 18161-18227 as well as prepared for next moves tomorrow after quarterly results announcement of 3 big companies(INFY,TCS & WIPRO).

As Indian markets will firstly react on the results of these 3 big companies tomorrow and and sustaining beyond today sideways trading range(18161-18227) will finally confirm it therefore should be firstly watched tomorrow.

Sharp fall & correction of Rally 

will start in next 2 sessions

Nifty-Intra Day Chart (11-Jan-2022):-

Technical Patterns formation in today intraday charts

1- Down moves in Bullish Falling Channel

2- Sharp up

3- Up moves in Bearish Rising Channels

4- Sharp fall

5- Selling patterns formations between 18020-18081 in last 5 hours

6- Whole day actual trading between 17965-18081

Conclusions from intra day chart analysis 

Although firstly Down moves after flat opening but were in Bullish Falling Channel therefore after that sharp up moves were seen. 

As selling patterns formations between 18020-18081 through Up moves in Bearish Rising Channels in last 5 hours therefore Nifty will not sustain above 18020 and sharp fall as well as correction of that rally which begun from 16410.20 on 20-12-2021 will start in next 2 sessions despite:-

1- at present All US Indices are trading in Green and Nasdaq is 145 Points up.

2- at present SGX Nifty is trading more than 100 Points up.

3- All the European markets closed with good gains today.

 As busy therefore Stock Market Outlook of today(11-01-2022) is not being updated.