Watch 7 levels for deeper correction beginning confirmations 

Technical Analysis,Research & Weekly Outlook

(Aug 31 to Sep 03,2020)

Nifty-EOD Chart Analysis

(Wave B structure & Stochastics)

Nifty-EOD Chart (28-Aug-2020):-

Technical Patterns and Formations in EOD charts

1- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning

2- Wave-a of Wave-B(9889.05 on 30-04-2020)

3- Wave-b of Wave-B(8806.75 on 16-05-2020)

4- Wave-c of Wave-B continuation with recent top formation at 11686.00 on 28-08-2020

5- Stochastic-%K(5) is at 86.26 & %D(3) is at 85.44

6- Stochastic is showing negative divergence in Overbought zone  

Conclusions from EOD chart analysis

(Wave B structure & Stochastics)

Wave-A of "ABC correction" completed at 7511.10 on 24-03-2020 and Wave-B started which is in continuation with recent top formation at 11686.00 on 28-08-2020 and no confirmation of its completion yet. 

As Short Term indicator has turned Overbought therefore emergence of Short Term correction expectations which may begin in the next week/weeks.

Nifty-EOD Chart Analysis

(Trendline & Average)

Nifty-EOD Chart (28-Aug-2020):-

Technical Patterns and Formations in EOD charts

1- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning

2- Wave-B continuation with recent top formation at 11686.00 on 28-08-2020  

3- Wave-B Trend line at 11470

4- Long Term Trend decider 200-Day SMA is today at 10819

Conclusions from EOD chart analysis

(Trendline & Average)

As indicators are Overbought therefore correction is expected hence firstly Wave-B Trend line(11470) and Long Term Trend decider 200-Day SMA(today at 10819) should be firstly watched in the coming week/weeks for the life of expected correction. 

Nifty-Intra Day Chart Analysis

(28-Aug-2020)

Nifty-Intra Day Chart (28-Aug-2020):-

Technical Patterns formation in today intraday charts

1- Whole day Up moves in Bearish Rising Channels

2- Whole day Down moves in Bullish Falling Channels

3- Whole day actual trading between 11590-11686

Conclusions from intra day chart analysis 

Although whole day positive zone trading but only volatility was seen. As selling developed through Whole day Up moves in Bearish Rising Channels and buying was seen through Whole day Down moves in Bullish Falling Channels therefore last Friday trading will be understood Mixed Patterns formation between 11590-11686 

Expected that Nifty will firstly trade and prepare for next moves within last Friday trading range(11590-11686) and finally sustaining it beyond will confirm next decisive moves which should be firstly watched  in the beginning of coming week.

Conclusions

(After Putting All Studies Together)

1- Long term trend is up.

2- Intermediate term trend is up.

3- Short term trend is up. 

Wave-B continuation and no confirmation of its completion yet but Short Term Indicator Stochastics has turned Overbought therefore Short Term correction is expected which may begin any day. 

As sufficient selling patterns have not been seen in previous week therefore until complete selling patterns will not develop on EOD and Intraday charts till then deeper down moves will not be seen. 

Both intraday buying and selling was seen between 11590-11686 last Friday therefore sustaining beyond this range should be firstly watched in the beginning of next week and next supports below 11590 are as follows:-

1- 11541-11563

2- 11462-11494

3- 11427-11446

4- 11375-11394

5- 11290-11330

As Wave-B is more than 5 months old therefore generating a signal of Wave-B time-wise completion. Weekly Stochastics is also showing negative divergence in Overbought zone hence suggesting that Wave-B is well riped for correction which may be deeper also. Life and size of correction will be decided by following 2 Crucial levels:-

1- Wave-B Trend line at 11470.

2- Long Term Trend decider 200-Day SMA is today at 10819.

As Wave-B is well matured for completion and Wave-C beginning towards and below the origin level of Wave-B(7511.10) therefore above mentioned 7 levels(2 Crucial levels and 5 supports) should be watched for Wave-B completion and deeper correction beginning confirmations.

 Sustaining beyond 11541-11617 

will generate first signal

Nifty-Intra Day Chart Analysis & 

Market Outlook(28-08-2020)

Nifty-Intra Day Chart (27-Aug-2020):-

Technical Patterns formation in today intraday charts

1- Selling between 11590-11617

2- Down moves in Bullish Falling Channels 

3- Volatility in last hour

4- Whole day actual trading between 11541-11617

Conclusions from intra day chart analysis 

As selling in first 4 hours therefore slipping in Mid-session but consolidation and support was also seen at lower levels through Down moves in Bullish Falling Channels.

Although volatility in last hour but both higher levels selling and lower levels some buying also therefore firstly sustaining beyond day's trading range(11541-11617) should be watched tomorrow for first signal of next decisive moves beginning after August derivative expiry.

Today highest will confirm more up moves

Nifty-Intra Day Chart Analysis &

 Market Outlook(27-08-2020)

Nifty-Intra Day Chart (26-Aug-2020):-

Technical Patterns formation in today intraday charts

1- Consolidation between 11462-11494

2- Slow up moves in last 2 hours

3- Whole day actual trading between 11462-11561

Conclusions from intra day chart analysis 

As firstly consolidation therefore up moves were seen in last 2 hours which were slow hence some profit booking can not be ruled out at higher levels. 

Short Term Indicators are overbought and some pofit booking also today therefore fistly sustaining above today highest(11561) should be watched for immedite more up moves confirmations.

As busy therefore Stock Market Outlook of today(26-08-2020) is not being updated.

 Break out of today trading range will confirm next decisive moves

Nifty-Intra Day Chart Analysis &

Market Outlook(25-08-2020)

Nifty-Intra Day Chart (24-Aug-2020):-

Technical Patterns formation in today intraday charts

1- Consolidation between 11411-11448

2- Sharp up

3- Selling between 11476-11497

4- Whole day actual trading between 11411-11497

Conclusions from intra day chart analysis 

As Dow Jones Futures was trading more than 80 points up and all the Asian markets were trading with good gains today morning therefore strong opening of Indian markets today. Although up moves in Mid-session after more than 2 hours consolidation but higher levels selling was also seen in last hours therefore Nifty will firstly trade and prepare for next moves within today range and finally valid break out of today trading range will confirm next decisive moves.