Watch crucial levels for confirmation after 646 points volatile week
Technical Analysis,Research & Weekly Outlook
(Dec 28 2020 to Jan 01,2021)
Nifty-EOD Chart Analysis
(2020 Rally Waves structure)
Nifty-EOD Chart (24-Dec-2020):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-C completion and Impulsive Wave-1 beginning from 7511.10 on 24-03-2020
2- Wave-1(9889.05 on 30-04-2020)
3- Wave-2(8806.75 on 18-05-2020)
4- Wave-3(11794.30 on 31-08-2020)
5- Wave-4(10790.20 on 24-09-2020)
6- Impulsive Wave-5 continuation with recent top formation at 13777.50 on 21-12-2020
Conclusions from EOD chart analysis
(2020 Rally Waves structure)
Corrective Wave-C completed and Impulsive Wave-1 started from 7511.10 on 24-03-2020. Now its impulsive Wave-5 is in continuation with recent top formation at 13777.50 on 21-12-2020 and no confirmation of its completion yet.
Although 646 points huge fall on 21-12-2020 after new life time highest formation at 13777.50 but strong recovery in the next 3 sessions and previous closing was at 13749.3 on 24-12-2020 which is just below life time high therefore view will not be Bearish but 13777.75 is most crucial level for the validity of Waves structure and it should be firstly watched in next week because down moves without moving above 13777.75 will mean correction of whole that rally which started from 7511.10 on 24-03-2020.
Nifty-Last 6 Sessions intraday charts analysis
Nifty-Intra Day Chart (Dec 17 to Dec 24,2020):-
Technical Patterns formation in last 6 Sessions intraday charts
1- 3 Sessions selling between 13715-13777 from 17th Dec to 21st Dec 2020
2- Consolidation between 13194-13345 on 22-12-2020(immediate supports)
3- Trading between 13715-13772 on 24-12-2020
4- 6 Sessions actual trading between 13131.5-13777.50
Conclusions from 6 Sessions
intra day chart analysis
As 3 sessions selling between 13715-13777 therefore huge fall on 21-12-2020 but good consolidation between 13194-13345 on 22-12-2020 and it will be immediate supports hence at present Nifty will be understood sideways between 13194-13777.
Nifty traded more than 3 hours within 3 Sessions selling range(13715-13777) on 24-12-2020 and closed also within it but intraday patterns are not showing any clear patterns therefore firstly 13715-13777 should be watched in the beginning of next week for first signal of next decisive moves beginning.
Nifty-Intra Day Chart Analysis
(24-Dec-2020)
Nifty-Intra Day Chart (24-Dec-2020):-
Technical Patterns formation in today intraday charts
1- Up moves with downward corrections
2- Down moves in Bullish Falling Channel
3- Last 4 hours slow up moves with downward corrections
4- Whole day actual trading between 13627-13771
Conclusions from intra day chart analysis
As gap up opening and after that consolidation in first 2 hours through Up moves with downward corrections and Down moves in Bullish Falling Channel therefore rally continuation in last 4 hours.
Although closing was near the top of the day but last 4 hour up moves were slow and 3 times downward corrections were also seen therefore some profit booking can not be ruled out hence firstly Nifty has to consolidate within last Thursday trading range(13627-13771) in next week for fresh up moves which should be firstly watched in the beginning of next week for its confirmations.
Conclusions
(After Putting All Studies Together)
All trends are up and impulsive Wave-5 continuation with recent top formation at 13777.50 on 21-12-2020 as well as no confirmation of its completion yet.
Immediate maximum target of Nifty was posted at 13777.75 on 05-12-2020 in "Rally continuation towards its immediate maximum target at 13777.75" and Nifty crashed 646 points on 21-12-2020 after recent top formation at 13777.50. It means that if correction remains continued without Nifty moving above 13777.75 then "ABC" correction of whole that rally will be seen which started from 7511.10 on 24-03-2020.
Previous week was highly volatile because first day was of 646 points huge fall and next 3 days were of almost whole 646 points recovery. As Short term technical positions reverses fast in such high volatility therefore firstly following crucial levels should be watched in next week for the confirmation of next decisive moves beginning;-
1- Nifty closed just below 13777.75 at 13749.25 therefore 13777.75 should be firstly watched in next week for the validity of Waves structure because moving above 13777.75 will mean recalculation of Waves structure.
2- Immediate resistances are between 13715-13777 and sustaining below 13715 will confirm correction continuation towards next supports between 13194-13345