Just watch levels for next Short Term Trend confirmations amid US-Iran tension
Technical Analysis,Research & Weekly Outlook
(Jan 06 to Jan 10,2019)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (03-Jan-2020):- |
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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 12293.90 on 20-12-2019.
Nifty-Intra Day Chart Analysis
(03-Jan-2020)
Nifty-Intra Day Chart (03-Jan-2020):- |
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1- Whole day Down moves in Bullish Falling Channels
2- Sharp up in last half hour
3- Whole day actual trading between 12192-12265
Conclusions from EOD chart analysis
All the trends are up and impulsive Wave-5 continuation with new life time high formation at 12293.90 on 20-12-2019 and no confirmation of its completion yet
Conclusions from intra day chart analysis
As Geo-Political tension developed last Friday morning after US killing Iran’s most powerful general in Baghdad airstrike therefore Crude oil jumpled,Dow Jones Futures fell more than 150 points down and all the Asian markets weakened hence Indian markets slipped after negative opening.
Although most of the time down moves remained continued but were in Bullish Falling Channels therefore sharp recovery from lower levels was seen in last half hour.
As Whole day Down moves were in Bullish Falling Channels which is a consolidation pattern therefore technically signals of fresh rally above life time highest are alive.
Conclusions (After Putting All Studies Together)
As whole day last Friday market was negative news driven and coming week market will again react on next developments in this matter therefore 12160-12287 should be watched in next week for next trend confirmations because immediate supports and resistances are lying within this range and finally sustaining beyond this range will form next Short Term Trend after break out of following immediate supports/resistances:-
1- Next supports are between 12160-1197
2- Next resistances are between 12265-12287
Crude rates have a big impact on Indian economy which jumped 3.64% last Friday and closed at 3 months high and if tension escalates in Middle-East region then it will certainly push Crude price which will certainly hurt Indian economy and markets as well.
Although Indian Stock markets are technically well poised for further rally above life time highest(12293.90) but US-Iran clashes can not be ruled out in the coming weeks therefore firstly sustaining beyond 12160-12287 should be watched in the coming week for next Short Term Trend confirmations.