Trading should be according to supports and resistances of last 40 sessions Wave-B levels
Technical Analysis,Research & Weekly Outlook
(May 18 to May 22,2020)
Nifty-EOD Chart Analysis
(Corrective Waves)
Nifty-EOD Chart (15-May-2020):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 completion at 12430.50 on 20-01-2020 and Wave-A of "corrective ABC Waves" beginning
2- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
3- Wave-B continuation with recent top formation at 9889.05 on 30-04-2020
4- Short Term correction beginning with recent bottom formation at 9043.95 on 12-05-2020
Conclusions from EOD chart analysis
(Corrective Waves)
Impulsive Wave-5 completed at 12430.50 on 20-01-2020 and after that Wave-A of "corrective ABC Waves" begun which finished at 7511.10 on 24-03-2020 and then Wave-B started,that is in continuation with recent top formation at 9889.05 on 30-04-2020. Now Short Term correction of Wave-B is on with recent bottom formation at 9043.95 on 12-05-2020.
Nifty-EOD Chart Analysis
(Averages & MACD)
Nifty-EOD Chart (15-May-2020):-
Technical Patterns and Formations in EOD charts
1- SMA(Simple Moving Averages)
A- 5-Day SMA is at 9219
B- 13-Day SMA is at 9316
C- 55-Day SMA is at 9520
D- 200-Day SMA is at 11081
2- MACD-(S,9,S,9,S,24 Close)(-7.62,211.94)
Conclusions from EOD chart analysis (Averages)
As Nifty has closed below all the above Long,Intermediate and Short term SMA and MACD is also showing downward cross over therefore strong signals of more down moves in next week.
Nifty
Last 10 Sessions intraday charts analysis
Nifty-Intra Day Chart (May 04 to May 15,2020):-
Technical Patterns formation in last 10 Sessions intraday charts
1- Down moves in Bullish Falling Channels in first 4 sessions
2- Selling(Resistances) in last 10 sessions between
A- 9352-9426
B- 9300-9355
C- 9250-9281
D- 9200-9231
3- Consolidation(Supports) in last 10 sessions
A- 9050-9090
B- 9044-9146
4- 10 Sessions actual trading between 9044-9584
Conclusions from 10 Sessions intra day chart analysis
As firstly consolidation through Down moves in Bullish Falling Channels in first 4 sessions of last 10 sessions therefore decisive up moves were seen in last 4 sessions but fresh selling developed at higher levels hence slipping to lower levels of last 10 sessions trading range in last week.
Clear consolidation at lower levels between 9044-9146 in last 4 sessions and good selling also at higher levels between 9200-9426 in last 6 sessions therefore firstly Nifty will have to trade and prepare for next decisive moves within this range and finally sustaining beyond this range will generate next big moves in the coming week/weeks.
Nifty
Last 2 Sessions intraday charts analysis
Nifty-Intra Day Chart (May 14 & May 15,2020):-
Technical Patterns formation in last 2 Sessions intraday charts
1- Selling between 9250-9281 on 14-05-2020(Immediate Resistances)
2- Selling between 9200-9231 on 14-05-2020(Immediate Resistances)
3- Consolidation between 9050-9090 on 15-05-2020(Immediate Supports)
4- 2 Sessions actual trading between 9050-9281
Conclusions from 2 Sessions intra day chart analysis
Nifty consolidated between 9044-9146 on 12-05-2020 and again consolidated within this range between 9050-9090 as well as closed within this range at 9136.85 on 15-05-2020 therefore this range(9044-9146) has become most crucial because finally sustaining beyond this range will give first signal of next decisive moves beginning in next week.
As good selling also between 9200-9281 on 14-05-2020 therefore follow up consolidation is firstly required for sustaining above 9281 hence Nifty will firstly trade within 9044-9281 in next week and finally valid break out of this range will generate more than 3% one sided decisive moves.
Conclusions
(After Putting All Studies Together)
1- Long term trend is down.
2- Intermediate term trend is sideways between 9044-9584 for the last 10 sessions
3- Short term trend is down
Although 10% Lower circuit filter triggered on 13-03-2020 but Nifty recovered 1604.25 points from lower levels and closed at the higher levels of the day that day. Nifty opened much weaker on next trading day(16-03-2020) and since then trading sideways between 7512-9889 for the last 40 sessions. As Wave-B formation has been seen within this range therefore now whole Wave-B will be understood sideways within this range.
As no confirmation of Wave-B completion yet therefore its continuation will be considered with recent top formation at 9889.05 on 30-04-2020. Now Short Term correction of Wave-B is on with recent bottom formation at 9043.95 on 12-05-2020 and also no confirmation of its completion yet also.
Nifty is sideways between 9044-9584 for the last 10 sessions with higher levels good selling and lower levels some supports also within this range. Supports and resistances between 9044-9584 have been updated above and beyond this range are as follows:-
Next resistances above 9584 are as follows:-
1- 9850-9889
2- 9955-10142
Next supports below 9044 are as follows:-
1- 8913-8972
2- 8700-8750
3- 8361-8449
4- 8056-8107
5- 7512-7970
Last 40 sessions sideways trading between 7512-9889 with Covid-19 Global markets news led highly volatile which will remain continued until any 100% positive situation will not develop regarding it.
As above mentioned multiple supports and resistances are lying between 7512-9889 therefore Nifty will trade within this range in the coming weeks and months. Wave-B formation and its on going Short Term Correction is also lying within this range therefore finally break out of this sideways range will decide the life of Wave-B,let it happen then will be decided accordingly and till then trading should be done according to supports and resistances of last 40 sessions Wave-B levels.