Watch next supports amid Short Term
correction beginning expectations
Technical Analysis,Research & Weekly Outlook
(May 08 to May 12,2023)
Nifty-EOD Chart Analysis
(Corrective Waves)
Nifty-EOD Chart (05-May-2023):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-(i) of Wave-[(iii)] of Wave-1 completion at 18887.6 on 01-12-2022 and Corrective Wave-A of "ABC" correction beginning.
2- Corrective Wave-A of Wave-[(ii)] of Wave-[(iii)] of Wave-1 completion at 17774.3 on 26-12-2022.
3- Corrective Wave-B of Wave-[(ii)] of Wave-[(iii)] of Wave-1 completion at 18265.3 on 30-12-2022.
4- Corrective Wave-C of Wave-[(ii)] of Wave-[(iii)] of Wave-1 completion indication with recent bottom formation at 16828.3 on 20-03-2023.
5- Pull Back Rally continuation with recent top formation at 18267.5 on 04-05-2023.
6- Last 4 sessions sideways correction between 18043-18267.
Conclusions from EOD chart
analysis(Corrective Waves)
Corrective Wave-A of "ABC" correction begun after impulsive Wave-(i) of Wave-[(iii)] of Wave-1 completion at 18887.6 on 01-12-2022. Wave-A completed at 17774.3 on 26-12-2022 and from this level Wave-B started which completed at 18265.3 on 30-12-2022 and Wave-C begun.
Although Wave-C continuation and no confirmation of its completion yet but strong signals of its completion emerged after strong Pull Back Rally beginning from its bottom at 16828.3 on 20-03-2023) because Nifty has recovered 1439 points(8.55%) from Wave-C lower levels. Now last 4 sessions sideways correction between 18043-18267 is on and no confirmation of its completion yet on EOD charts.
Nifty-EOD Chart Analysis
(Bollinger Band,Stochastic & MACD)
Nifty-EOD Chart (05-May-2023):-
Technical Patterns and Formations in EOD charts
1- Nifty is hovering around upper Band of Bollinger Band.
2- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling from Over bought zone.
3- Stochastic:- %K(5)- 75.44 & %D(3)- 85.15.
4- MACD- Its both lines are kissing in positive zone.
5- MACD(26,12)- 275.57 & EXP(9)- 265.18 & Divergence- 10.39
Conclusions from EOD chart analysis
(Bollinger Band,Stochastic & MACD)
Positions of Daily indicators are as follows:-
1- As Nifty is hovering around upper Band of Bollinger Band therefore suggesting that Short Term correction is on cards.
2- As in Short Term indicator Stochastic %K(5) line has intersected %D(3) line downward and its both lines are falling from Over bought zone therefore showing strong indications of Short Term correction beginning.
3- As in MACD its both lines are kissing in positive zone therefore suggesting indecisiveness and resultant sideways market can not be ruled out in the coming week/weeks.
Indicators are suggesting that Short Term correction will be seen in next week.
Nifty-Intra Day Chart Analysis
(05-May-2023)
Nifty-Intra Day Chart (05-May-2023):-
Technical Patterns formation in today intraday charts
1- Up moves in Bearish Rising Channel
2- Sharp falls
3- Selling between 18131-18167(Immediate resistances)
4- Down moves in Bullish Falling Channel in last hour
5- Whole day actual trading between 18056-18216
Conclusions from intra day chart analysis
Although firstly up moves started after 138 points weaker opening but Up moves were in Bearish Rising Channel therefore sharp falls were seen from intraday higher levels. As selling was seen in Mid-session also between 18131-18167 therefore down moves developed and remained continued till last 15 minutes. Last hour down moves were in Bullish Falling Channel which means little consolidation at lower levels thereore some up moves towards immediate resistances between 18131-18167 can not be ruled out in the beginning of next week. It should be kept in mind that until Nifty will not sustain above last Friday highest till then decisive up moves will not be seen because good intraday selling was seen at higher levels last Friday.
Conclusions
(After putting all studies together)
All the trends are up. Although Pull Back rally continuation and no confirmation of its completion yet on EOD charts but first signal of Short Term correction beginning has emerged in previous week Weekly charts after "Bearish Shooting Star" Weekly Candle formation. As Short Term indicators are also showing Short Term correction beginning signals and intraday charts of last Friday are showing higher levels selling patterns formation as well therefore firstly Short Term correction is expected towards following next supports in the beginning of next week:-
1- 17937-17988
2- 17886-17922
3- 17712-17803
4- 17613-17646
5- 17503-17541
Above supports should be watched one by one for correction continuation/completion indications and confirmations. Let expected correction complete then rally will be seen towards following next resistances which are above last Friday closing:-
1- 18131-18167
2- 18168-18192
3- 18216-18240
4- 18345-18387(Strong resistances)
