Finally rally continuation after Very Short Term correction
Technical Analysis,Research & Weekly Outlook
(Jan 10 to Jan 17,2020)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (10-Jan-2020):- |
| Just click on chart for its enlarged view |
1- Impulsive Wave-1 beginning from 6825.80 on 29-02-2016 after 1 financial year(2015-16) correction completion.
2- Impulsive Wave-1 completion at 8968.70 on 07-09-2016 and corrective Wave-2 beginning
3- Corrective Wave-2 completion at 7893.80 on 26-12-2016 and impulsive Wave-3 beginning
4- Impulsive Wave-3 completion at 11760.20 on 28-08-2018 and corrective Wave-4 beginning
5- Corrective Wave-4 completion at 10004.55 on 26-10-2018 and impulsive Wave-5 beginning
6- Impulsive Wave-5 continuation with new life time high formation at 12311.20 on 10-01-2020.
Nifty-Intra Day Chart Analysis
(10-Jan-2020)
Nifty-Intra Day Chart (10-Jan-2020):- |
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1- Down moves in Bullish Falling Channel
2- Up moves in Bearish Rising Channels
3- Selling between 12295-12311(Immediate Resistances)
4- Down moves in Bullish Falling Channel
5- Support between 12214-12242(Immediate Supports)
6- Whole day actual trading between 12214-12311
Conclusions from EOD chart analysis
All the trends are up and impulsive Wave-5 continuation with new life time high formation at 12311.20 on 10-01-2020 and no confirmation of its completion yet.
Conclusions from intra day chart analysis
Although gap up opening but down moves started which were in Bullish Falling Channel therefore next 2 hours up moves were seen. As Up moves were in Bearish Rising Channels and higher levels selling was seen between 12295-12311 therefore Down moves begun which were again in Bullish Falling Channel.
As last hour lower levels support between 12214-12242 and higher levels selling between 12295-12311 therefore these 2 trading ranges will be immediate supports and resistances of Nifty and intraday volatility was also seen whole day hence firstly Nifty has to trade and prepare for next moves within last Friday trading range(12214-12311) which will be seen in the beginning of next week but expected that finally rally will be seen above life time highest after fresh consolidation.
Conclusions (After Putting All Studies Together)
Indian markets are Bullish and new life time highest formation in previous session last Friday as well as no selling pattern formation on EOD and Weekly charts therefore rally continuation will be expected.
Last resistances of Nifty was updated in previous weekly Outlook between 12265-12287 and Nifty closed below it last Friday after making new life time high formation at 12311.20. As fresh selling was also seen just above it between 12295-12311 and now last resistances of Nifty will be understood between 12265-12311 therefore firstly fresh consolidation is firstly required in next week for sustaining above 12311.
As Short Term indicators have turned Over bought and indicators are also showing negative divergence in Over bought zone therefore Short Term correction will be understood on door step but intraday charts of Nifty has not shown sufficient selling patterns hence any deeper correction will not be expected.
Indicators remains Over bought for many months in Bull markets and remains Over sold for many months in Bear markets therefore finally on going rally continuation will be expected after Very Short Term sideways time wise correction because some selling was seen last Friday.