Rally continuation towards its immediate maximum target at 13777.75
Technical Analysis,Research & Weekly Outlook
(Dec 07 to Dec 11,2020)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (04-Dec-2020):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-1 beginning from 6825.80 on 29-02-2016 after 1 financial year(2015-16) correction completion.
2- Corrective Wave 2 beginning after Wave 1 completion at 8968.70 on 07-09-2016
3- Impulsive Wave 3 beginning after Corrective Wave-2 completion at 7893.80 on 26-12-2016
4- Corrective Wave 4 beginning after Wave 3 completion at 11760.20 on 28-08-2018
5- Impulsive Wave 5 beginning after Corrective Wave-4 completion at 10004.55 on 26-10-2018
6- Impulsive Wave-5 completion after new life time high formation at 12430.50 on 20-01-2020 and Wave-A of "corrective ABC Waves" beginning
7-Wave-A (11614.50 on 03-02-2020)
8-Wave-B (12246.70 on 14-02-2020)
9-Corrective Wave-C completion at 7511.10 on 24-03-2020.
10-Impulsive Wave-1 of new Waves structure begun at 7511.10 on 24-03-2020 which is in continuation with recent top formation at 13280.05 on 04-12-2020
Conclusions from EOD chart analysis
(Waves structure)
Waves structure which started from 6825.80 on 29-02-2016 completed its impulsive moves after 5th wave completion at 12430.50 on 20-01-2020 and Wave-A of "corrective ABC Waves" started.
Wave-C of "ABC" correction completed at 7511.10 on 24-03-2020 and new waves structure begun which is in continuation with recent top formation at 13280.05 on 04-12-2020.
Nifty-EOD Chart Analysis
(2020 Rally Waves structure)
Nifty-EOD Chart (04-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 13280.05 on 04-12-2020
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 13280.05 on 04-12-2020 and no indication of its completion yet.
Nifty-Weekly Chart Analysis
(Stochastic)
Nifty-Weekly Chart (04-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- Impulsive Wave-5 continuation with recent top formation at 13280.05 on 04-12-2020
3- Stochastic at %K(5) is at 93.49 & %D(3) is at 93.93
Conclusions from Weekly chart analysis
(Stochastic)
Although Impulsive Wave-5 continuation with recent top formation at 13280.05 on 04-12-2020 and no indication of its completion yet on EOD and Weekly charts but Weekly Stochastic indicator is in Overbought zone therefore emergence of 1st indicator of correction beginning.
As %K has not intersected downward %D yet therefore more indications are required for Intermediate Term correction beginning.
Nifty-Intra Day Chart Analysis
(04-Dec-2020)
Nifty-Intra Day Chart (04-Dec-2020):-
Technical Patterns formation in today intraday charts
1- Up moves after positive opening
2- Down moves in Bullish Falling Channels
3- Up moves with downward corrections
4- Whole day actual trading between 13153-13280
Conclusions from intra day chart analysis
Firstly up moves after positive opening and after that Down moves in Bullish Falling Channels therefore finally up moves were seen in last hours which were with downward corrections.
As whole day consolidation through above mentioned intraday patterns formations and selling patterns were not seen last Friday therefore on going rally continuation is expected in the beginning of next 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.
Impulsive Wave-5 continuation with recent top formation at 13280.05 on 04-12-2020 and no indication of its completion yet on intraday,EOD and Weekly charts therefore rally continuation is expected in the beginning of next week.
Although Stochastic indicator is Overbought in EOD and Weekly charts but %K has not intersected downward %D in both therefore more some more indications are required for Short and Intermediate Term correction beginning.
As per Elliott Wave theory maximum target of on going impulsive Wave-5 of Nifty is at 13777.75. Its calculation is as follows:-
As per Elliott Wave theory "Wave-3 should not be shorter than both Wave-1 and Wave-5. Now impulsive Wave-5 is on and it should not gain more points than Wave-3 gained.
Impulsive Wave-1 gained=2377.95 points(9889.05-7511.10)
Impulsive Wave-3 gained=2987.55 points(11794.30-8806.75)
Impulsive Wave-5 has gained 2154.25 points till 04-12-2020(13280.05-10790.20)
As according to Elliott Wave theory Wave-5 can not gain more points than Wave-3 gained therefore on going impulsive Wave-5 will gain lesser points than 2987.55.
Impulsive Wave-5 started from 10790.20 on 24-09-2020 and it has to gain less than 2987.55 points therefore maximum target of on going impulsive Wave-5 is 13777.75(10790.20+2987.55)
As per above given calculation maximum target of on going impulsive Wave-5(rally) of Nifty is at 13777.75 but till now no selling patterns formations. If selling patterns develops on intraday,EOD and weekly charts in the coming week/weeks but without moving above 13777.75 then correction of whole rally which started from 7511.10 on 24-03-2020 will be considered.
Rally continuation towards its immediate maximum target 13777.75 is expected in next week.
