Levels will confirm next Trend after Union-Budget under the shadow of crashing Global markets
Technical Analysis,Research & Weekly Outlook
(Feb 01 to Feb 05,2021)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (29-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 completion with recent top formation at 14753.55 on 21-01-2021 and correction beginning
7- Correction continuation with recent bottom formation at 13596.75 on 29-01-2021
Conclusions from EOD chart analysis
(Waves structure)
Waves structure which started from 7511.10 on 24-03-2020 completed at 14753.55 on 21-01-2021 and its correction started that is in continuation with recent bottom formation at 13596.75 on 29-01-2021.
Nifty-EOD Chart Analysis
(Averages & Stochastic)
Nifty-EOD Chart (29-Jan-2021):-
Technical Patterns and Formations in EOD charts
1- Averages
A- 5-Day SMA is today at 14006
B- 13-Day SMA is today at 14325
C- 55-Day SMA is today at 13654
D- 200-Day SMA is today at11558
2- Stochastic %K(5) is at 6.11 & %D(3) is at 8.14
Conclusions from EOD chart analysis
(Averages & Stochastic)
Correction continuation with slipping below 55-Day SMA(13654) which is Intermediate Term Trend turning down confirmation.
As Short term Trend indicator has turned extremely over sold therefore signals of a Pull Back rally which will be seen also if Global markets will not be in crashing mode as were in previous week due to new variant of Coronavirus.
Nifty-EOD Chart Analysis
(Fibonacci retracement levels)
Nifty-EOD Chart (29-Jan-2021):-
Technical Patterns and Formations in EOD charts
Fibonacci retracement levels of Whole Wave Structure(7511.10-14753.55)
1- 13.0%- 13811(Corrected)
2- 23.6%- 13044
3- 27.0%- 12797
4- 38.2%- 11986(Crucial)
5- 50.0%- 11132(Crucial)
6- 61.8%- 10278(Crucial)
7- 70.7%- 9633
8- 76.4%- 9220
9- 78.6%- 9061
10-88.6%- 8337
Conclusions from EOD chart analysis
(Fibonacci retracement levels)
As more than 13% correction has been happened therefore Fibonacci retracement levels of Whole Wave Structure(7511.10-14753.55) has been updated because "ABC" correction according to its levels may be seen in the coming weeks/months/years.
Conclusions
(After Putting All Studies Together)
1- Long Term Trend is up.
2- Intermediate Term Trend is down.
3- Short Term Trend has turned down.
Immediate maximum target of Nifty was told at 14754.25 on 16-01-2021 and Nifty crashed 1156 points from 14753.55 which was 0.70 points below the given level and it means that given Waves structure is still valid because last Friday closing was below 55-Day SMA(13654) after more than 13% retracement.
As eruption of new variant of Coronavirus therefore all the Global markets are crashing and most markets closed in deep Red last Friday. Although Union-Budget will be tabled next Monday and Indian markets will react according to its announcements as well as next session will be highly volatile therefore firstly sustaining beyond following crucial levels should be firstly watched in next week to understand final reaction of Indian markets on Union-Budget and new variant of Coronavirus:-
Next supports are as follows:-
1- 13500-13546
2- 13193-13286
3- 23.6% retracement levels- 13044
Next resistances are as follows:-
1- 13841-13898
2- 14120-14194
3- 14455-14619
4- 14701-14753
Although Nifty closed below last 25 sessions lowest after loosing 270 points in last hour last Friday but consolidation patterns formations between 13730-13816 in last 2 sessions therefore firstly sustaining it beyond should be watched in the coming week for next Trend confirmation after Union-Budget Next Monday as well as under the shadow of crashing Global markets due to new variant of Coronavirus.