11526 will confirm downward trend formation
Technical Analysis,Research & Weekly Outlook
(Nov 02 to Nov 06,2020)
Nifty-EOD Chart Analysis (Wave-B structure)
Nifty-EOD Chart (30-Oct-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-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- Wave-5 of Wave-B continuation with recent top formation at 12025.45 on 15-10-2020
7- Last 19 Sessions sideways trading between 11536-12025
Conclusions from EOD chart analysis(Wave-B structure)
Corrective Wave-A completed at 7511.10 on 24-03-2020 and after that Wave-B started. Now Wave-5 of Wave-B continuation with recent top formation at 12025.45 and no confirmation of its completion yet.
Last 19 Sessions sideways trading between 11565-12025 and finally sustaining beyond this range will confirm next big moves which should be firstly watched in the coming week/weeks.
Nifty-EOD Chart Analysis
(Averages,MACD & Stochastic)
Nifty-EOD Chart (30-Oct-2020):-
Technical Patterns and Formations in EOD charts
1- Wave-B continuation with recent top formation at 12025.45 on 15-10-2020.
2- MACD line intersected Average line downward
3- -%K(5) is at 19.72 & %D(3) is at 26.84
4-Averages
A- 5-Day SMA is today at 11740
B- 21-Day SMA is today at 11789
C- 55-Day SMA is today at 11526
D- 200-Day SMA is today at 10703
Conclusions from EOD chart analysis
(Averages,MACD & Stochastic)
Following indicators are suggesting downward trend formation is beginning:-
1- 5-Day SMA(today at 11740) has moved below 21-Day SMA(11789)
2- MACD line clearly intersected Average line downward
Nifty got support just above 55-Day SMA(today at 11526) therefore Intermediate Term Trend is still intact and Stochastic is moving into Over sold zone as well as Long Term Trend is very much up therefore some up moves may be seen in the beginning of next week.
Nifty-Last 19 Sessions intraday charts analysis
Nifty-Intra Day Chart (Oct 06 to Oct 30,2020):-
Technical Patterns formation in last 19 Sessions intraday charts
1- Selling(Resistances) in last 19 sessions are between:-
A- 11710-11744
B- 11875-11945
C- 11974-12025
2- Consolidation(Supports) in last 19 sessions are sessions:-
A- 11536-11600
B- 11565-11607
3- 19 Sessions actual trading between 11536-12025
Conclusions from 19 Sessions intra day chart analysis
Previous supports were between 11565-11607 and some consolidation was seen within and near about this range between 11536-11600 last Friday therefore some up moves can not be ruled out in the beginning of next week.
As sufficiently strong resistances also have been developed at higher levels in the last 19 sessions therefore until Nifty will not sustain above 12025 after complete fresh consolidation till then next rally will not be considered.
Fresh selling and once sustaining below 11536 will mean sharp down moves therefore firstly sustaining it beyond should be watched in next week because last Friday closing was little above this level.
Nifty-Intra Day Chart Analysis
(30-Oct-2020)
Nifty-Intra Day Chart (30-Oct-2020):-
Technical Patterns formation in today intraday charts
1- Selling between 11717-11748
2- Down moves with upward corrections
3- Support between 11536-11600
4- Up moves with downward corrections
5- Whole day actual trading between 11536-11748
Conclusions from intra day chart analysis
As selling in first hour therefore down moves were seen after that but got supports at lower levels hence up moves in last 2 hours.
Although last 2 hours up moves were with downward corrections and resultant some more up moves will be seen in the beginning of next week but good selling was seen between 11717-11748 therefore until Nifty will not sustaining above 11748 after fresh consolidation till then decisive up moves will not be seen.
Conclusions (After Putting All Studies Together)
1- Long term trend is up.
2- Intermediate term trend is up and will be down after sustaining below its decider 55-Day SMA(today at 11526)
3- Short term trend is down.
Last 19 sessions sideways trading between 11536-12025 at the top of on going Wave-B OF which 5th Wave is on and once sustaining below it will mean correction of whole that wave which started from 7511.10 on 24-03-2020
As last 19 sessions lowest is at 11536 and Intermediate term trend decider 55-Day SMA is just below it at 11526 therefore sustaining below 11526 will confirm next big down moves which should be firstly watched in next week because MACD is also confirming downward trend formation.
