Levels will confirm life and size of
previous week started correction
Technical Analysis,Research &
Weekly Outlook(Oct 25 to Oct 29,2021)
Nifty-EOD Chart Analysis
(Averages,Stochastic & MACD)
Nifty-EOD Chart (22-Oct-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 continuation with recent high and new life time top formation at 18604.50 on 19-10-2021
2- Short Term correction continuation with recent bottom formations at 18034.30 on 22-10-2021
2-Averages
A- 5-Day SMA is today at 18291
B- 21-Day SMA is today at 17946
3- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling towards Over sold zone.
4- Stochastic- %K(5) is at 25.49 & %D(3) is at 46.46.
5- In MACD- MACD line has intersected Average line upward. Its MACD line has has turned flat while its Average line is moving up in positive zone.
Conclusions from EOD chart analysis
(Averages,Stochastic & MACD)
Impulsive Wave-5 continuation with recent high and new life time top formation at 18604.50 on 19-10-2021 and no confirmation of its completion yet on EOD Charts but Short Term correction begun in previous week which is in continuation with recent bottom formations at 18034.30 on 22-10-2021
In Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling towards Over sold zone. As it has not turned completely Oversold and positive divergence has also not developed yet therefore some more down moves are expected in the beginning of next week.
As up tend is still intact therefore MACD is still showing upward trend but with caution because its MACD line has has turned flat.
Nifty-Last 8 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Oct 12 to Oct22,2021):-
Technical Patterns formation in last 8 Sessions intraday charts
1- Selling(Resistances) in last 8 Sessions are as follows:-
A- 18548-18604
B- 18379-18458
C- 18230-18314
2- Consolidation(Supports) in last 8 Sessions are as follows:-
A- 18048-18084
B- 18009-18050(Gap support)
C- 17865-17942
3- 8 Sessions actual trading between 17865-18604
Conclusions from 8 Sessions intra day chart analysis
Last 8 Sessions trading between 17865-18604 with above given lower levels supports and higher levels selling as well as last Friday closing was above all the supports therefore Nifty will have to trade and prepare for next decisive moves and that will firstly done in next week within last 8 sessions trading range(17865-18604).
Let Nifty to trade and prepare for next decisive moves then will be decided according to intraday charts patterns formations in the coming week/weeks. Finally next decisive moves confirmation will be sustaining it beyond which should be firstly watched in the coming week/weeks.
Nifty-Intra Day Chart Analysis &
Market Outlook(25-10-2021)
Nifty-Intra Day Chart (22-Oct-2021):-
Technical Patterns formation in today intraday charts
1- Selling between 18230-18314
2- Sharp fall
3- Down moves with upward corrections
4- Mixed Patterns formation in last 3 hours between 18035-18168
5- Whole day actual trading between 18035-18314
Conclusions from
intra day chart analysis
Although strong opening last Friday and first 2 hours trading also in Green zone but selling developed therefore sharp fall was seen in Mid-session. As follow up selling was also seen after sharp fall therefore Down moves remain continued till last hours.
As last 3 hours trading was with Mixed Patterns formation between 18035-18168 with lower levels some supports also therefore firstly sustaining beyond this range should be watched in the beginning of next week for last week started correction continuation below 18035 or first signal of correction completion above 18168.
Conclusions
(After putting all studies together)
1- Long term trend is up.
2- Intermediate term trend is up.
3- Short term trend is down.
Although Nifty closed at life time highest at 18338.5 on 14-10-2021 but we posted following Weekly analysis topic on 18-10-2021:-
Remain cautious because maximum
target of Nifty is at 18793.00
Maximum target of Nifty was given at 18793.00 and correction started from 18604.50 on 19-10-2021 which remained continuaed till last Friday and no confirmation of previous week started correction yet.
Although MACD is showing upward trend yet but Stochastic is showing some more down moves possibilities therefore it can not be ruled out in the beginning of next week. As Stochastic is just above Over sold zone and MACD is still showing up trend therefore up moves may also be seen towards above given resistances after some down moves.
Last 8 sessions trading was between 17865-18604 with above updated supports and resistances and those are almost equally strong therefore expected that Nifty will firstly trade and prepare for next big moves within this range. As finally sustaining beyond this range will confirm the life and size of previous week started correction therefore it should be firstly watched in the coming week/weeks because sustaining below 17865 will mean deeper correction possibility after honouring maximum target of Nifty at 18793.00