Rally continuation amid only
Short Term correction signals
Technical Analysis,Research & Weekly Outlook
(Aug 30 to Sep 03,2021)
Nifty & Bank Nifty Weekly Outlook
(Aug 30 to Sep 03,2021)
Nifty-EOD Chart (27-Aug-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
3- Corrective Wave-2 completion at 10790.20 on 24-09-2020
4- Impulsive Wave-3 completion at 15431.8 on 16-02-2021
5- Corrective Wave-4 completion at 14151.4 on 22-04-2021
6- Impulsive Wave-5 continuation with recent high and new life time top formation at 16722.00 on 27-08-2021
Conclusions from EOD chart analysis
(Waves structure)
Impulsive Wave-5 continuation with recent high and new life time top formation at 16722.00 on 27-08-2021. As last Friday closing was above last 10 sessions trading range and no indication of impulsive Wave-5 completion on EOD charts yet therefore its continuation above life time top(16722) is expected in next week.
Nifty-EOD Chart Analysis
(MACD & Stochastic)
Nifty-EOD Chart (27-Aug-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 continuation with recent high and new life time top formation at 16722.00 on 27-08-2021
2- Stochastic- %K(5) is at 83.08 & %D(3) is at 74.45
3- Stochastic- %K(5) line has intersected %D(3) line upward and both lines are rising within and towards Over bought zone.
4- Stochastic is showing negative divergence.
5- In MACD- MACD line has intersected Average line upward.
6- In MACD- MACD line has flattened and Average line is rising in positive zone.
Conclusions from EOD chart analysis
(Stochastic & MACD)
Although Stochastic is showing negative divergence but its both lines are rising within and towards Over bought zone and has not been completely Over bought yet as well as %K(5) line has not intersected %D(3) line downward therefore indications of some more up moves which will be firstly seen in the beginning of next week. As %K(5) is completely Overbought and & %D(3) is just below Overbought zone therefore cautious approach is required because this indicator will be completely Overbought after some more up moves and start to give selling signals also.
In MACD indicator MACD line has intersected Average line upward. Although Average line is rising in positive zone but it has flattened therefore indicating that Downward trend may begin in Short term hence Bulls should remain cautious.'
Nifty-Last 10 Sessions intraday
charts analysis
Nifty-Intra Day Chart (Aug 13 to Aug 27,2021):-
Technical Patterns formation in last 10 Sessions intraday charts
1- Selling(Resistances) in last 10 Sessions are as follows:-
A- 16661-16701
B- 16631-16652(Minor resistances)
2- Consolidation(Supports) in last 10 Sessions are as follows:-
A- 16674-16722
B- 16625-16642(Minor support)
C- 15527-15542
D- 15509-15526
E- 15407-15465
3- Last 10 Sessions actual trading between 16376-16722
Conclusions from 10 Sessions
intra day chart analysis
As lower levels good supports and higher levels equally good resistances were seen in previous 9 sessions before last Friday therefore almost whole day up moves were with consolidation through downward corrections and closing was near the top of the day and at life time highest also.
Although firstly up moves will be seen in the beginning of next week but strong resistances were below 16701 and sustaining above it should also watched for rally continuation.
Nifty-Intra Day Chart Analysis &
Market Outlook(30-08-2021)
Nifty-Intra Day Chart (27-Aug-2021):-
Technical Patterns formation in today intraday charts
1- 76 Points sharp fall below 16600 after flat opening in first 15 minutes
2- Up moves with downward corrections
3- Last 4 hours slow up moves with downward corrections between 16674-16722
4- Whole day actual trading between 16565-16722
Conclusions from intra day chart analysis
As good selling above 16631 in last 6 sessions therefore firstly 76 Points sharp fall below 16600 last Friday but consolidation started through Up moves with downward corrections which remained continued till last hour.
Strong resistances were between 16661-16701 and fresh consolidation was required for decisive up moves therefore last 4 hours up moves between 16674-16722 were slow and with downward corrections and last Friday closing was at life time highest after new life time top formation.
As whole day good intraday consolidation last Friday therefore firstly up moves above last Friday(16722) will be seen in the beginning of next week.
Conclusions
(After Putting All Studies Together)
All the trends are up,Bullish rally continuation and no indication of rally completion on EOD and intraday charts yet therefore rally continuation is expected in the beginning of next week.
As indicators are showing that Short Term correction is on cards and good resistances were below 16701 therefore fresh consolidation is also required near about it for sustaining above it.
Although rally continuation but Short Term indicators are showing only Short Term correction signals therefore it may be seen if fresh selling patterns develops on intraday and EOD charts.