Short Term correction in both 

Nifty & Bank-Nifty

Nifty & Bank-Nifty Weekly Outlook

(Jan 04 to Jan 08,2021)

Nifty-EOD Chart Analysis

(Waves structure)

Nifty-EOD Chart (01-Jan-2021):-

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(12025.50 on 15-10-2020)

5- Wave-4(11535.50 on 30-10-2020)

6- Impulsive Wave-5 continuation with recent top formation at 14049.85 on 01-01-2021

Conclusions from EOD chart analysis

(Waves structure)

Corrective Wave-C completed and Impulsive Wave-1 started from 7511.10 on 24-03-2020. As per previously given Waves structure maximum target of Nifty was at 13777.75 but Nifty has moved above it in last week therefore Waves have been recounted and new waves structure has been given.  

As per new waves structure impulsive Wave-5 continuation with recent top formation at 14049.85 on 01-01-2021 and no confirmation of its completion yet on EOD charts.

 

Nifty-Last 4 Sessions intraday charts analysis

Nifty-Intra Day Chart (Dec 29 2020  to Jan 01,2021):-

Technical Patterns formation in last 4 Sessions intraday charts

1- Last 4 sessions up moves in Bearish Rising Channel 

2- 4 Sessions actual trading between 13865-14049 

Conclusions from 4 Sessions intra day chart analysis 

As last 4 sessions up moves in Bearish Rising Channel therefore it seems that selling process is on in Indian markets and expected that finally decisive down moves will begin in next week and Nifty will slip below last 4 sessions lowest(13865).

Nifty-Intra Day Chart Analysis & 

Market Outlook(01-01-2021)

Nifty-Intra Day Chart (01-Jan-2021):-

Technical Patterns formation in today intraday charts

1- Selling between 14023-14036

2- Sharp fall

3- Selling between 14027-14040

4- Selling between 14037-14049

5- Sharp fall

6- Whole day actual trading between 13992-14049

Conclusions from intra day chart analysis 

As continuous selling after every rise above 14000 last Friday therefore expected that Nifty will slip and sustain below 14000 in the beginning of next week.

Nifty-Conclusions 

(After Putting All Studies Together)

All trends are up. Impulsive Wave-5 continuation and no indication of its completion yet on EOD charts but last 4 sessions up moves in Bearish Rising Channel and last Friday intraday charts are showing good selling patterns formations therefore it seems that selling process is on in Indian markets and expected that finally decisive down moves will begin in next week and Nifty will slip below last 4 sessions lowest(13865).

Bank-Nifty-EOD Chart Analysis

(Corrective Waves)

Bank-Nifty-EOD Chart (01-Jan-2021):-

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(25232.60 on 31-08-2020)

3- Wave-b of Wave-B(20404.90 on 24-09-2020)

4- Wave-c of Wave-B continuation with recent top formation at 31510.30 on 30-12-2020

Conclusions from EOD chart analysis

(Corrective Waves)

Life time highest formation of Bank-Nifty at 32613.10 on 30-12-2019 and its sharp "ABC" correction started in Feb 2020. Its corrective Wave-A completed at 16116.30 on 24-03-2020 and now Wave-c of Wave-B continuation with recent top formation at 31510.30 on 30-12-2020 as well as no indication of its completion yet on EOD charts.

Bank-Nifty-Last 4 Sessions 

intraday charts analysis

Bank-Nifty-Intra Day Chart (Dec 29 2020  to Jan 01,2021):-

Technical Patterns formation in last 4 Sessions intraday charts

1- Last 4 sessions selling between 31260-31392

2- Consolidation in first 2 sessions between 31003-31169

3- 4 Sessions actual trading between 31003-31510 

Conclusions from 4 Sessions intra day chart analysis 

Although some consolidation at lower levels in first 2 sessions but higher levels good selling in last 4 sessions therefore expected that Bank-Nifty will not sustain above 31392 and will slip 31000 in next week.

Bank-Nifty-Intra Day Chart Analysis 

& Market Outlook(01-01-2021)

Bank-Nifty-Intra Day Chart (01-Jan-2021):-

Technical Patterns formation in today intraday charts

1- Selling between 31270-31384

2- Sharp fall

3- Whole day actual trading between 31189-31384

Conclusions from intra day chart analysis 

As continuous good selling till 03:00 PM therefore sharp fall in last half hour and expected that Bank-Nifty will slip and sustain below 31000 in the beginning of next week.

Bank-Nifty-Conclusions

(After Putting All Studies Together)

As Bank-Nifty has not moved above life time highest(32613.10) in that 2020 rally which started after Feb-2020 sharp fall therefore this post 24 March 2020 rally will be understood corrective Wave-B. 

All trends are up. Now Wave-c of Wave-B continuation and no indication of its completion on EOD charts. Last 4 Sessions sideways trading between 31003-31392 with higher levels good selling and lower levels some buying. As selling was seen last Friday also therefore expected that Bank-Nifty will slip and sustain below last 4 sessions lowest(31003) because good higher levels selling in last 4 sessions.

Conclusions

(After Putting All Studies Together)

As Short Term indicators of Nifty and Bank-Nifty have turned Over bought and intraday charts of last 4 sessions in both are showing selling also therefore Short Term correction is expected in next week below 13800 and 30500 respectively.

 

Short Term correction in the first week of next year 

Nifty-Intra Day Chart Analysis & 

Market Outlook(01-01-2021)

Nifty-Intra Day Chart (31-Dec-2020):-

Technical Patterns formation in today intraday charts

1- Up moves in Bearish Rising Channels

2- Down moves in Bullish Falling Channel

3- Whole day sideways trading between 13957-14024

4- Whole day actual trading between 13937-14024

Conclusions from intra day chart analysis 

Whole day sideways trading between 13957-14024 with higher levels selling through Up moves in Bearish Rising Channels and lower levels buying also through Down moves in Bullish Falling Channel therefore firstly sustaining beyond 13957-14024 should be watched in the coming sessions for next decisive moves beginning confirmations. 

Selling process is on for the last 2 sessions and higher levels selling was seen today also. Although some lower levels buying today but expected that follow up selling will develop in the coming sessions and Short Term correction will be seen below 13800 in the first week of next year therefore be cautious.

Short Term correction expectations after coming sessions follow up selling

Nifty-Intra Day Chart Analysis & 

Market Outlook(31-12-2020)

Nifty-Intra Day Chart (30-Dec-2020):-

Technical Patterns formation in today intraday charts

1- Selling between 13894-13947

2- Sharp slipping

3- Slow up moves in last 3 hours

4- Whole day actual trading between 13865-13997

Conclusions from intra day chart analysis 

As most Asian markets were trading strong therefore Indian markets gap up opening but not sustaining and slipping fast to negative zone in first 4 minutes therefore it will be understood that Indian markets under performed Global cues today.

Although firstly 3 hours selling and after that slipping sharply also but up moves in last 3 hours were seen. As these up moves were slow therefore some selling on the back of these slow up moves can not be ruled out. 

Selling patterns formations yesterday and again selling was seen today therefore selling process continuation will be understood and Short Term correction will be expected after coming sessions follow up selling.

 Short Term correction after next 

1/2 sessions follow up selling

Nifty-Intra Day Chart Analysis & 

Market Outlook(30-12-2020)

Nifty-Intra Day Chart (29-Dec-2020):-

Technical Patterns formation in today intraday charts

1- Selling between 13937-13967

2- Supports and sideways trading between 13860-13916

3- Selling between 13918-13939

4- Whole day actual trading between 13860-13967

Conclusions from intra day chart analysis 

As Dow Jones Futures was trading more than 120 points up and most Asian markets were strong therefore strong gap up opening of Indian markets but selling developed hence 100 points fall was seen before 11:00 AM. 

Lower levels some supports and 2 hours sideways trading therefore after that some up moves were seen but again selling developed in last 2 hours hence it will be understood that selling process has been started because higher levels selling developed today.

As Short Term Indicators are Over bought therefore Short Term correction will be seen but follow up selling is firstly required in the next 1/2 sessions. 

Rally continuation expectations after fresh consolidation near about today highest

Nifty-Intra Day Chart Analysis & 

Market Outlook(29-12-2020)

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

Technical Patterns formation in today intraday charts

1- Down moves in Bullish Falling Channel

2- Slow up moves with downward corrections

3- Whole day actual trading between 13812-13885

Conclusions from intra day chart analysis 

As President Donald Trump signed the stimulus deal Sunday night therefore Dow Jones Futures was trading more than 140 points up today morning and resultant Nifty opened gap up and rally continuation with new life time highest.

Although firstly consolidation through Down moves in Bullish Falling Channel but last 3 hours slow up moves with downward corrections therefore some profit booking can not be ruled out at higher levels hence fresh consolidation is firstly required tomorrow for decisive up moves above today highest.

As US markets led Global markets rally is very much on and Indian markets consolidate at higher levels after getting strong Dow Jones closing and/or its positive zone trading Futures in morning hours therefore it also has to be watched for the confirmation of Indian markets opening and initial hours trading.

Correction will be considered only after fresh selling and sustaining below today lowest otherwise at present rally continuation will be expected after fresh consolidation near about today highest.