Watch levels also amid strong indications of Short Term Correction
Nifty & Bank Nifty Weekly Outlook
(Jul 13 to Jul 17,2020)
Nifty-EOD Chart Analysis
(Averages & Stochastics)
Nifty-EOD Chart (10-Jul-2020):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
2- Wave-B continuation with recent top formation at 10847.9 on 08-07-2020
3- SMA(Simple Moving Averages)
A- 5-Day SMA is at 10770
B- 13-Day SMA is at 10540
C- 55-Day SMA is at 9803
D- 200-Day SMA is at 10884
4- Stochastic-%K(5) is at 67.37 & %D(3) is at 77.48
Conclusions from EOD chart analysis
(Averages & Stochastics)
Corrective Wave-B continuation and no confirmation of its completion yet. As Short Term Indicator Stochastics have turned overbought and started to slip also therefore emergence of short Term correction possibility.
Short term averages are trading above longer term averages which is a signal of strength because Nifty traded just below Long Term Trend decider 200-Day SMA(today at 10884) in last week but firstly sustaining above it should be watched in next weeks after expected short Term correction completion.
Nifty
Last 5 Sessions intraday charts analysis
Nifty-Intra Day Chart (Jul 06 to Jul 10,2020):-
Technical Patterns formation in last 5 Sessions intraday charts
1- Resistances in last 5 sessions are between 10788-10845
2- Supports in last 5 sessions are sessions 10690-10732
3- 5 Sessions actual trading between 10676-10847
Conclusions from 5 Sessions intra day chart analysis
Nifty traded sideways within 171 points in last 5 sessions with above mentioned supports and resistances. As both are sufficiently strong therefore Nifty will firstly trade and prepare for next decisive moves within last 5 Sessions trading range(10676-10847) in the beginning of coming week,finally sustaining it beyond will confirm next big moves which should be watched in next week.
Nifty-Intra Day Chart Analysis
(10-Jul-2020)
Nifty-Intra Day Chart (10-Jul-2020):-
Technical Patterns formation in today intraday charts
1- Up moves in Bearish Rising Channels
2- Down moves in Bullish Falling Channels
3- Whole day actual trading between 10713-10819
Conclusions from intra day chart analysis
As most time sideways trading with both selling through Up moves in Bearish Rising Channels and consolidation also with Down moves in Bullish Falling Channels therefore whole day trading will be understood with Mixed Patterns formation between 10713-10819 and finally sustaining it beyond will generate first signal of next big moves which should firstly watched in the coming week.
Bank Nifty
EOD Chart Analysis Averages & Stochastics)
Bank Nifty-EOD Chart (10-Jul-2020):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-A completion at 16116.30 on 24-03-2020 and Wave-B beginning
2- Wave-B continuation with recent top formation at 23080.6 on 08-07-2020
3- SMA(Simple Moving Averages)
A- 5-Day SMA is at 22543
B- 13-Day SMA is at 21981
C- 55-Day SMA is at 20330
D- 200-Day SMA is at 26364
4- Stochastic-%K(5) is at 61.14 & %D(3) is at 74.56
Conclusions from EOD chart analysis
(Averages & Stochastics)
Corrective Wave-B continuation and no confirmation of its completion yet. As Short Term Indicator Stochastics have turned overbought and started to slip also therefore emergence of short Term correction possibility.
Short term averages are trading above longer term averages but Bank Nifty trading much below Long Term Trend decider 200-Day SMA(today at 26364) therefore not showing much strength and firstly sustaining beyond 5-Day SMA(today at 22543) should be watched in the coming weeks after expected short Term correction completion.
Bank Nifty
Last 5 Sessions intraday charts analysis
Bank Nifty-Intra Day Chart (Jul 06 to Jul 10,2020):-
Technical Patterns formation in last 5 Sessions intraday charts
1- Selling(Resistances) in last 5 sessions are between:-
A- 22736-22812
B- 22878-22952
C- 22990-23069
2- Consolidation(Supports) in last 5 sessions are sessions:-
A- 22230-22302
B- 22320-22476
C- 22060-22145
3- 5 Sessions actual trading between 22040-23080
Conclusions from 5 Sessions intra day chart analysis
As both lower levels supports and higher levels selling in the last 5 sessions therefore Bank Nifty will firstly trade and prepare for next decisive moves within last 5 Sessions trading range(22040-23080) in coming week,finally sustaining it beyond will confirm next big moves which should be watched in next week.
Bank Nifty
Intra Day Chart Analysis(10-Jul-2020)
Bank Nifty-Intra Day Chart (10-Jul-2020):-
Technical Patterns formation in today intraday charts
1- Selling between 22714-22835
2- Down moves
3- Support between 22320-22476
4- Whole day actual trading between 22320-22835
Conclusions from intra day chart analysis
Although Nifty traded sideways after opening last Friday but Bank Nifty under performed and remained more than 0.25% weaker also and firstly selling developed therefore down moves were seen in Mid-session. As some intraday supports were seen in last 3 hours also between 22320-22476 therefore firstly sustaining it beyond should be watched in the beginning of next week for the life of last Friday beginning correction.
Conclusions
(After Putting All Studies Together)
1- Long term trend is down and it will be up after sustaining above its decider 200-Day SMA(In Nifty at 10884)(In Bank Nifty at 26364)
2- Intermediate term trend is up
3- Short term trend is up
Wave-B continuation in both Nifty and Bank Nifty and no indication of its completion yet. Let complete selling patters develop on EOD and Intraday charts and sustain below crucial levels then its completion will be considered.
Next supports and resistances of both Nifty and Bank Nifty have been updated above therefore should be watched one by one in next week for decisive moves beginning amid more weakness possibility in bank Nifty if deeper correction begins.
As short term indicators have started to move down from overbought zone in both Nifty and Bank Nifty therefore strong indications of Short Term correction beginning but both the Indices remained sideways in last 5 sessions therefore sustaining beyond last 5 sessions trading ranges(updated above) should be firstly watched in next week for the life and types of correction because correction may be sideways also.
