03 July 2020 lowest will confirm Short term correction beginning
Nifty & Bank Nifty Weekly Outlook
(Jul 06 to Jul 10,2020)
Nifty-EOD Chart Analysis
(Wave-B structure & Trendline)
Nifty-EOD Chart (03-Jul-2020):-
1- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
2- Wave-a of Wave-B completion at 9889.05 on 30-04-2020
3- Wave-b of Wave-B completion at 8806.75 on 16-05-2020
4- Wave-c of Wave-B continuation with recent top formation at 10631.30 on 03-07-2020
5- Trendline now at 10080
Conclusions from EOD chart analysis
(Wave-B structure & Trendline)
Wave-c of Wave-B continuation with recent top formation at 10631.30 and no confirmation of its completion yet. As Wave-B continuation on a trendline which is now at 10080 therefore whenever correction starts then sustaining beyond this trendline should be firstly watched for the confirmation Wave-B life.
Nifty-Intra Day Chart Analysis
(03-Jul-2020)
Nifty-Intra Day Chart (03-Jul-2020):-
Technical Patterns formation in today intraday charts
1- Selling between 10587-10631
2- Up moves in Bearish Rising Channel
3- Whole day actual trading between 10563-10631
Conclusions from intra day chart analysis
Whole day sideways trading with most time selling and after that Bearish pattern formation of Up moves in Bearish Rising Channel therefore signals of Short Term correction beginning.
Nifty-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(Today at 10889)
2- Intermediate term trend is up
3- Short term trend is up
Next supports of Nifty are as follows:-
1- 10299-10358
2- 10400-10447
3- 10224-10320
4- 10082-10133
5- 9866-9922
Next resistances of Nifty are as follows:-
1- 10587-10631
2- 10751-10827(Gap resistance)
As Short Term indicators have turned overbought and Nifty is testing upper band of Bollinger Band therefore signals of strong Short Term correction beginning because intraday charts of 03-07-2020 have also shown selling patterns formation.
Follow up selling and once sustaining below 10563 will mean Short Term correction beginning towards above mentioned supports.
Trendline of Wave-B is now at 10080 and its valid break down will mean deeper correction beginning because that will be strong signal of Wave-B completion and Wave-C beginning towards and below the origin of Wave-B(7511.10)
Bank Nifty-EOD Chart Analysis
(Wave-B structure)
Bank Nifty-EOD Chart (03-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-a of Wave-B completion at 21967.00 on 30-04-2020
3- Wave-b of Wave-B completion at 17105.75 on 22-05-2020
4- Wave-c of Wave-B continuation with recent top formation at 22479.5 on 24-06-2020
5- 10 sessions sideways trading between 20926-22479
Conclusions from EOD chart analysis
(Wave-B structure)
Wave-c of Wave-B continuation with recent top formation at 22479.5 and no confirmation of its completion yet but last 10 sessions sideways trading between 20926-22479 and sustaining below 20926 will confirm deeper correction after Wave-B completion.
Bank Nifty-Intra Day Chart Analysis
(03-Jul-2020)
Bank Nifty-Intra Day Chart (03-Jul-2020):-
Technical Patterns formation in today intraday charts
1- Sharp fall after positive opening
2- Selling between 21871-22074
3- Selling between 21808-21096
4- Whole day actual trading between 21768-22130
Conclusions from intra day chart analysis
Although positive opening but after that sharp fall and whole day good selling firstly after some up moves and at lower levels in last 2 hours therefore down moves are expected below day's lowest(21768) in the beginning of next week.
Bank Nifty-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(Today at 26491)
2- Intermediate term trend is up
3- Short term trend is up
Next supports of Bank Nifty are as follows:-
1- 21224-21387
2- 21046-21193
Next resistances of Bank Nifty are as follows:-
1- 21808-22074
2- 22160-22220
3- 22252-22365
As Short Term indicators have moves down from Overbought zone and leading indicators are showing negative divergence also therefore strong signals of Short Term correction beginning.
Last 10 sessions trading between 20926-22479 and its valid break down will mean deeper correction beginning because that will be strong signal of Wave-B completion and Wave-C beginning towards and below the origin of Wave-B(16116.30)
As intraday charts of 03-07-2020 are showing good selling patterns formation therefore expected that weakness and down moves towards above mentioned supports will be seen in the beginning of next week.
conclusions
(After Putting All Studies Together)
If weakness develops in Indian Stock markets in next week then Bank Nifty will lead because good selling was seen in last 2 sessions of previous week.
Firstly sustaining below last Friday(03-07-2020) lowest should be watched in the beginning of next week because that will confirm Short term correction beginning.