Short Term correction towards next supports amid Sideways market turning expectations
Technical Analysis,Research & Weekly Outlook
(Sep 20 to Sep 24,2021)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (17-Sep-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 17792.95 on 17-09-2021
Conclusions from EOD chart
analysis(Waves structure)
Strong Bullish rally continuation in the form of Impulsive Wave-5 with recent high and new life time top formation at 17792.95 on 17-09-2021 and no indication of its completion yet on EOD chart except only Black Candle formation last Friday.
Although last Friday negative closing was near the lower levels of the day after loosing more than 200 points from higher levels but let more selling develop on EOD charts then deeper correction will be considered despite some down moves expectations in the beginning of next week.
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (17-Sep-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 continuation with recent high and new life time top formation at 17792.95 on 17-09-2021
2- Stochastic- %K(5) is at 83.84 & %D(3) is at 81.10
3- Stochastic- Both lines %K(5) and %D(3) are kising in Over bought zone.
4- Stochastic is showing negative divergence.
5- In MACD- Both lines are kissing in positive zone.
Conclusions from EOD chart analysis
(Stochastic & MACD)
As in Stochastic Both lines %K(5) and %D(3) are kissing in Over bought zone and it is showing negative divergence also therefore Stochastic is indicating Short Term correction possibilities in next week.
As in MACD both lines are kissing in positive zone and MACD line has started to fall therefore emergence of downward trend formation indications.
Nifty-Intra Day Chart Analysis
(17-Sep-2021)
Nifty-Intra Day Chart (17-Sep-2021):-
Technical Patterns formation in today intraday charts
1- Selling between 17739-17792
2- Selling between 17611-17659
3- Whole day actual trading between 17538-17792
Conclusions from intra day chart analysis
Although firstly strong up moves after gap up opening but selling developed and slipping from higher levels in Mid session. As again follow up selling was seen therefore down moves till last hour and closing was near the lower levels of the day.
Whole day good selling and consolidation patterns were not seen last Friday therefore expected that down moves will be seen below last Friday lowest(17538) in the beginning of next week.
Conclusions
(After Putting All Studies Together)
All the trends are up and Bullish rally continuation in full force. As Short Term indicators are suggesting that Short Term correction is on cards and intraday charts of last Friday are showing selling patterns also therefore Short Term correction will be seen towards following supports in the beginning of of next week:-
1- 17528-17547
2- 17445-17463
3- 17370-17394
4- 17280-17305
5- 17213-17270
Immediate Resistances of Nifty are as follows:-
1- 17739-17792
2- 17611-17659
Although Short Term correction is expected in the beginning of next week but deeper correction will be seen only after complete selling patterns formations on EOD and intraday charts and its confirmation will be after sustaining below/Forceful break down of above mentioned last support(17213). Let it happen then deeper correction will be considered otherwise it should also be kept in mind that usually Bullish rallies remains continued with Short Term and sideways correction and till then Nifty should be considered sideways between 17213-17792.
More or less now Nifty will be considered sideways between 17213-17792 in next week amid Short Term correction expectations towards above mentioned supports in the beginning of next week.