Correction continuation towards much deeper supports
Technical Analysis,Research & Weekly Outlook
(Mar 01 to Mar 05,2021)
Nifty-EOD Chart Analysis (Waves structure)
Nifty-EOD Chart (26-Feb-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- Impulsive Wave-1 completion at 11794.30 on 31-08-2020 and corrective Wave-2 beginning
3- Corrective Wave-2 completion at 10790.20 on 24-09-2020 and Impulsive Wave-3 beginning
4- Impulsive Wave-3 completion indications after new life time highest top formation at 15431.8 on 16-02-2021
5- Correction continuation with recent last Friday bottom formation at 14467.75 on 26-02-2021 which is below last 19 sessions lowest.
Conclusions from EOD chart analysis
(Waves structure)
Impulsive Wave-3 completion indications after new life time highest top formation at 15431.8 on 16-02-2021 because recent last Friday bottom formation formation below last 19 sessions lowest.
Nifty-EOD Chart Analysis (Averages)
Nifty-EOD Chart (26-Feb-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-1 beginning from 7511.10 on 24-03-2020
2- Impulsive Wave-3 completion indications at 15431.8 on 16-02-2021
3- Correction continuation with recent bottom formation at 14467.75 on 26-02-2021
4-Averages
A- 5-Day SMA is today at 14798
B- 13-Day SMA is today at 15028
C- 21-Day SMA is today at 14893
D- 55-Day SMA is today at 14364
E- 200-Day SMA is today at 12126
Conclusions from EOD chart analysis (Averages)
As last Friday closing was below 5,13 and 21 SMA therefore indications of Indian markets weakness deepening and firstly sustaining beyond 55-Day SMA(14364) should be watched in next week for the life of on going correction.
Nifty-Weekly Chart Analysis (Stochastic)
Nifty-Weekly Chart (26-Feb-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-1 beginning from 7511.10 on 24-03-2020
2- Impulsive Wave-3 completion indications at 15431.8 on 16-02-2021
3- Correction continuation with 2 continuous weekly Black Candles formation
4- Stochastic %K(5) is at 73.54 & %D(3) is at 75.03
5- %K(5) intersected %D(3) downward
6- Stochastic is showing negative divergence in over bought through moving down when Nifty is moving up.
Conclusions from Weekly chart
analysis (Stochastic)
Correction is very much on and indications of more down moves because:-
1- 2 weekly Black Candles formation continuously.
2- Above mentioned No 5 & 6 developments on Weekly Stochastic.
Nifty-Last 20 Sessions intraday
charts analysis
Nifty-Intra Day Chart (Feb 01 to Feb 26,2021):-
Technical Patterns formation in last 20 Sessions intraday charts
1- Union-Budget day rally on 01-02-2021
2- Last 19 sessions trading between 14468-15421
3- Selling(Resistances) in last 19 Sessions are between:-
A- 14635-14696
B- 14856-14919
C- 15125-15176
D- 15213-15245
E- 15274-15315
F- 15335-15431
3- Consolidation(Supports) in last 20 Sessions are sessions:-
A- 14504-14615(Last Friday closing was within at 14529.15)
B- 13817-13865
C- 13725-13776
D- 13606-13701
Conclusions from 20 Sessions
intra day chart analysis
Strong 701 points rally was seen on Union-Budget day(01-02-2021) and after that Nifty traded last 19 sessions of Feb 2021 between 14468-15421. As good selling in last 9 sessions therefore last Friday closing was near 19 previous sessions lowest.
As multiple resistances have developed in last 9 sessions therefore expected that more down moves will be seen towards above mentioned supports in next week.
Nifty-Intra Day Chart Analysis(26-Feb-2021)
Nifty-Intra Day Chart (26-Feb-2021):-
Technical Patterns formation in today intraday charts
1- Selling between 14856-14919
2- Down moves
3- Selling between 14635-14696
4- Down moves
5- Whole day actual trading between 14468-14919
Conclusions from intra day chart analysis
As first 2 hours selling after gap down opening therefore after that down moves were seen. Again follow up selling in last hours hence closing at lowest of the day after last half hour down moves.
Whole day selling last Friday and no consolidation therefore correction 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 down.
As last Friday closing was below short term Averages and Weekly Stochastic is also suggesting more down moves therefore last 2 weeks old correction continuation is expected in next week. Remain cautious also because once sustaining below 14468 will mean sharp fall because it will be breaking down confirmation of 19 sessions trading range and next supports are much below it.
55-Day SMA is today at 14364 and sustaining below it will mean Intermediate Term Trend turning down confirmation which indicates correction life from 3 weeks to 3 months therefore this levels should be firstly watched in next week for the period of on going correction.
As good intraday selling in last 9 sessions and no consolidation last Friday therefore on going correction will remain continued towards above mentioned supports which are much deeper.