Firstly watch crucial levels in Budget news led highly volatile next week
Technical Analysis,Research &
Weekly Outlook(Jan 25 to Jan 29,2021)
Nifty-EOD Chart Analysis
(Averages,MACD & Stochastic)
Nifty-EOD Chart (22-Jan-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 continuation with recent top formation at 14753.55 on 21-01-2021
2-Averages
A- 5-Day SMA is today at 14481
B- 13-Day SMA is today at 14437
C- 21-Day SMA is today at 14264
D- 55-Day SMA is today at 13541
3- Stochastic %K(5) is at 64.14 & %D(3) is at 67.11
4- MACD line intersected Average line downward
Conclusions from EOD chart analysis
(Averages,MACD & Stochastic)
Impulsive Wave-5 continuation with recent top formation at 14753.55 on 21-01-2021. Although no confirmation of its completion yet but correction beginning signals developed in last 2 sessions through 2 long Black candles formation and previous week closing below 13-Day SMA(14437) at 14357.75.
In Stochastic %K(5) has intersected downward %D(3) and started to move down from Over bought zone after making lower top formation therefore indicating more down moves possibilities in the coming sessions.
In MACD also MACD line intersected Average line downward therefore showing Short Term Trend turning down indications.
Nifty-Last 5 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Jan 18 to Jan 22,2021):-
Technical Patterns formation in last 5 Sessions intraday charts
1 Selling(Resistances) in last 5 sessions are between:-
A- 14477-14528
B- 14555-14619
C- 14701-14753
2- Consolidation(Supports) in last 5 sessions are sessions:-
A- 14265-14340
3- Mixed Patterns formation between 14358-14483
4- 5 Sessions actual trading between 14223-14753
Conclusions from 5
Sessions intra day chart analysis
Last 5 Sessions actual trading between 14223-14753 with higher levels multiple resistances and only one support range at lower levels.
As more than last 2 hours trading with Mixed Patterns formation between 14358-14483 last Friday was just above next supports(14265-14340) and just below next resistances(14477-14528) therefore expected that Nifty will firstly trade between 14265-14528 in the beginning of next week and finally sustaining beyond this range will confirm the life of last Thursday started correction.
Nifty-Intra Day Chart
Analysis(22-Jan-2021)
Nifty-Intra Day Chart (22-Jan-2021):-
Technical Patterns formation in today intraday charts
1- Selling between 14555-14619(immediate Resistances)
2- Sharp fall
2- Selling between 14477-14528(immediate Resistances)
3- Mixed Patterns formation between 14358-14483
4- Whole day actual trading between 14358-14619
Conclusions from
intra day chart analysis
Although positive zone trading was seen in first hour after flat opening but selling developed therefore sharp fall was seen.
Follow up selling was seen in Mid-session but last more than 2 hours trading was with Mixed Patterns formation between 14358-14483 because both consolidation and selling patterns were seen within this range.
Expected that Nifty will firstly trade and prepare for next moves between 14358-14483 in the beginning of next week and firstly sustaining it beyond should be watched for moves towards next support below 14358 and next resistances above 14483.
Conclusions
(After Putting All Studies Together)
1- Long Term Trend is up
2- Intermediate Term Trend is up
3- Short Term Trend has turned down after closing below 13-Day SMA(14437) at 14357.75.
As Waves structure was updated in previous weekly Outlook and no material change in its set up therefore only Averages and Indicators have been posted in this week Outlook.
Although new life time highest in previous week but Nifty could not move above Immediate maximum target of Nifty which was at 14754.25 and slipped also 395 points from 14753.55 in last 2 sessions therefore given waves structure is still valid.
As Union Budget will be announced on 01-02-2021 and Indian markets will have to prepare for post Budget big moves therefore next 4 sessions of the coming week will be crucial because Nifty will technically prepare for post-Budget big moves in this period.
As coming week will be Budget news led highly volatile and firstly sustaining beyond crucial levels(14265-14528) should be watched in next week because Nifty will firstly prepare for post-Budget big moves between and near about 14265-14528 in the beginning of next week. As strong resistances are above it therefore Nifty will have to consolidate completely for crossing and sustaining above those resistances. Remain completely careful because fresh selling within this range and sustaining below 14265 will mean huge fall because next supports are much below it.