Watch Levels for the life & length of on going Correction
Technical Analysis,Research &
Weekly Outlook
(Jan 19 to Jan 23,2026)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (16-Jan-2026):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-3 completion with new life time top formations at 26277.30 on 27-09-2024 and Corrective Wave-A of Wave-4 of "ABC" correction beginning.
2- Corrective Wave-A of Wave-4 completion at 23263.20 on 21-11-2024.
3- Corrective Wave-B of Wave-4 completion at 24857.80 on 05-12-2024.
4- Corrective Wave-C of Wave-4 completion at 21743.70 on 07-04-2025 and Impulsive Wave-5 beginning from this level.
5- Impulsive Wave-i of Wave-5 completion at 25669.30 on 30-06-2025.
6- Corrective Wave-ii of Wave-5 completion at 24337.70 on 08-08-2025.
7- Impulsive Wave-iii of Wave-5 continuation with recent high and new life time top formations at 26373.20 on 05-01-2026.
8- Correction continuation with recent bottom formations at 25473.40 on 12-01-2026.
Conclusions from EOD chart analysis
(Waves structure)
Impulsive Wave-3 of that Waves structure completed after new life time top formations at 26277.30 on 27-09-2024 of which impulsive Wave-1 of new Waves structure started from 15183.40 on 17-06-2022. Corrective Wave-A of Wave-4 of "ABC correction" begun from life time top which completed at 23263.20 on 21-11-2024 and Wave-B started from this level which completed at 24857.80 on 05-12-2024. Wave-C of "ABC correction" completed at 21743.70 on 07-04-2025 and impulsive Wave-5 begun from this level.
Impulsive Wave-i of Wave-5 completed at 25669.30 on 30-06-2025 and from this levels corrective Wave-ii of Wave-5 started which completed at 24337.70 on 08-08-2025. From this level impulsive Wave-iii of Wave-5 started which is now in continuation with its recent high and new life time top formations at 26373.20 on 05-01-2026 and no indication of its completion yet on EOD charts.
Correction begun from life time top 2 weeks before and firstly forceful downward moves were also seen during this correction but previous week 4 sessions sideways trading was between 25474-25870. As Nifty is preparing for next next decisive moves within this range therefore finally sustaining beyond this range will confirm the life and length of on going correction.
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (16-Jan-2026):-
Technical Patterns and Formations in EOD charts
1- Stochastic- %K(5) line has intersected %D(3) line upward and its both lines are rising from Over sold zone.
2- Stochastic:- %K(5)- 37.57 & %D(3)- 33.51.
3- In MACD- MACD line has intersected Average line downward and its both lines are falling in positive & negative zone.
4- MACD(26,12)- -90.88 & EXP(9)- 43.14 & Divergence- -133.14.
Conclusions from EOD chart analysis
(Stochastic & MACD)
Technical positions of Short Term indicators are as follows:-
1- As in Stochastic indicator %K(5) line has intersected %D(3) line upward and its both lines are rising from Over sold zone therefore it will be understood that this indicator is showing more upward moves possibility in the coming week.
2- As in MACD indicator its MACD line has intersected Average line downward and its both lines are falling in positive & negative zone therefore it will be understood that MACD indicator has generated good signals of Short Term Downward trend formations and fresh downward moves beginning possibility also.
Nifty-EOD Chart Analysis
(Averages)
Nifty-EOD Chart (16-Jan-2026):-
Technical Patterns and Formations in EOD charts
Averages:-
1- 5-Day SMA is today at 25713(Very Short Term Trend decider)
2- 21-Day SMA is today at 25982(Short Term Trend decider)
3- 55-Day SMA is today at 25947(Intermediate Term Trend decider)
4- 100-Day SMA is today at 25570
5- 200-Day SMA is today at 25096(Long Term Trend decider)
Conclusions from EOD chart analysis
(Averages)
As Nifty is continuously closing below 5-Day,21-Day and 55-Day SMAs for the last 6 sessions therefore Very Short Term to Intermediate Term Trends have turned down but Long Term Trend is up because Nifty is closing well above its decider 200-Day SMA for the last 9 months.
Nifty-Intra Day Chart Analysis
(16-Jan-2026)
Nifty-Intra Day Chart (16-Jan-2026):-
Technical Patterns formation in today intraday charts
1- Consolidation between 25687-25731
2- Up moves with downward corrections
3- Sharp up
4- Up moves in Bearish Rising Channel
5- Down moves with upward corrections
6- Volatility in Mid-Session
7- Support in last 3 hours between 25669-25719
8- Whole day trading between 25663-25873
Conclusions from intra day
chart analysis
As firstly consolidation after positive opening and lower levels consolidation was also seen between 25610-25674 one day before as well as all around high expectations of BJP victory in Maharashtra Corporation elections therefore firstly Upward moves with downward corrections and after that sharp upward moves were seen after BJP victory clarity from announcing election results.
Sentiment turned heated in Mid-Session because BJP victory was being seen in almost whole Maharashtra therefore selling developed at higher levels firstly through Up moves in Bearish Rising Channel and after that Down moves with upward corrections hence intraday correction remained continued almost 3 hours and Nifty lost all the first 2 hours gains. As lower levels support developed in the last 3 hours between 25669-25719 and below this range supports was seen one day before also therefore immediate supports of Nifty will be between 25610-25719 and finally sustaining beyond this range will generate first strong signal of on going correction continuation or completion.
Conclusions (After putting
all studies together)
1- Very Short Term Trend is Down.
2- Short Term Trend is is Down.
3- Intermediate Term Trend is Down.
4- Long Term Trend is Up.
Impulsive Wave-iii of Wave-5 of that Waves structure is now in continuation with its recent high and new life time top formations at 26373.20 on 05-01-2026 of which Wave-1 begun more than 3 years before from 15183.40 on 17-06-2022. Although no confirmation of impulsive Wave-iii of Wave-5 completion yet on EOD charts but the correction which started from the day of new life time top formation is also now in continuation with its recent bottom formations at 25473.40 on 12-01-2026 and no confirmation of its completion also on EOD charts.
Remain cautious because:-
1- Very Short Term to Intermediate Term Trends have turned down during last 9 sessions correction.
2- On going correction is so much strong that Nifty slipped below the lowest of previous 42 sessions in only first 5 sessions of this correction.
Although Short Term indicator MACD is showing signals of fresh downward moves beginning possibility but another Short Term indicator Stochastic is suggesting more upward moves possibility also in the coming week therefore after some upward moves sustaining beyond immediate resistances of Nifty should also be watched for next upward moves beginning confirmations. As last 4 sessions sideways trading was between 25474-25870 and Nifty is preparing for next decisive moves within this range as well as finally sustaining beyond this range will confirm the life and length of on going correction also therefore should be watched for its confirmations.
As immediate supports of Nifty are between 25610-25719 and Nifty closed within this range between at 25694.35 last Friday also therefore firstly sustaining beyond this supports range should be watched in the coming week for first indication of next decisive moves beginning. Immediate resistances of Nifty are between 25789-25865 and finally sustaining beyond this range will confirm on going correction continuation or completion therefore it should also be watched for its confirmations.
Next resistances above immediate resistances of Nifty as follows which should be watched one by one for next upward moves beginning confirmations:-
1- 25883-25942
2- 26069-26108
3- 26149-26181
4- 26216-26260
5- 26329-26373
Next supports below immediate supports of Nifty are as follows which should be watched one by one for next downward moves beginning confirmations:-
1- 25450-25578
2- 25319-25391
3- 25193-25315
4- 25032-25136