17600 will confirm the life and
length of on going Pull Back Rally
Technical Analysis,Research & Weekly Outlook
(Dec 13 to Dec 17,2021)
Nifty-EOD Chart Analysis
(Averages,Stochastic & MACD)
Nifty-EOD Chart (10-Dec-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 completion after new life time top formation at 18604.50 on 19-10-2021
2- Correction continuation with recent bottom formations at 16782.40 on 29-11-2021
3-Averages
A- 5-Day SMA is today at 17317
B- 21-Day SMA is today at 17477
C- 55-Day SMA is today at 17768
D- 200-Day SMA is today at 15586
4- Stochastic- %K(5) line has intersected %D(3) line upward and its both lines are rising within Over bought zone.
5- Stochastic:- %K(5)- 95.89 & %D(3)- 75.07.
6- In MACD- MACD line has intersected Average line upward and its both lines are rising in negative zone.
7- MACD(26,12)- -128.01 & EXP(9)- -161.62 & Divergence- 33.60
Conclusions from EOD chart analysis
(Averages,Stochastic & MACD)
As Nifty is above 200-Day SMA therefore Long Term Trend is up and Short Term Trend has also turned up after previous week closing above both Short Term Averages(5 & 21-Day SMA). Intermediate Term Trend is still down because Nifty is below 55-Day SMA(17768) and firstly sustaining it beyond should be watched in the coming week/weeks for the life and length of on going correction confirmations.
In Stochastic both lines are moving up after upward intersection and have entered in Over bought zone also but has not shown negative divergence and still no downward intersection therefore more up moves are expected in the coming week.
As in MACD both lines are moving up after upward intersection therefore showing upward trend formation signals but its both lines are in negative zone hence at present suggesting limited up moves possibility only. Let its both lines to sustain within positive zone then decisive up moves will be considered.
Nifty-EOD Chart Analysis
(Wave-5 Fibonacci retracement levels)
Nifty-EOD Chart (10-Dec-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 beginning after Corrective Wave-4 completion at 14151.40 on 22-04-2021
2- Impulsive Wave-5 completion after new life time top formation at 18604.50 on 19-10-2021
3- Corrective Wave-A of "ABC" Correction continuation with recent bottom formations at 16782.40 on 29-11-2021
4- Wave-5 Fibonacci Retracement levels(14151-18604)
13.0%-18,025
23.6%-17,553
27.0%-17,402
38.2%-16,903(Crucial)
50.0%-16,377(Crucial)
61.8%-15,852(Crucial)
70.7%-15,456
76.4%-15,202
78.6%-15,104
88.6%-14,659
Conclusions from EOD chart analysis
(Wave-5 Fibonacci retracement levels)
As "ABC" Correction has been started after Wave-5 completion and it will firstly correct Wave-5 therefore Wave-5 Fibonacci Retracement levels(14151-18604)have been updated above because Nifty will firstly retrace according to these levels.
38.2% retracement has been completed after slipping below 16,903 and up moves have been seen in previous week after getting supports near about it. As Wave-A correction will be seen in this manner according to these levels in the coming weeks and months therefore should be kept in mind during on going correction.
Nifty-Last 14 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Nov 23 to Dec 10,2021):-
Technical Patterns formation in last 14 Sessions intraday charts
1- Selling(Resistances) in last 14 Sessions are as follows:-
A- 17552-17600
2- Consolidation(Supports) in last 14 Sessions are as follows:-
A- 17367-17438(Multiple strong supports)
B- 17015-17108
C- 16953-17011
3- Last 14 Sessions actual trading between 16783-17600
Conclusions from 14 Sessions
intra day chart analysis
Last 14 Sessions trading between 16783-17600 with above mentioned strong supports at lower levels and only one resistance at higher levels as well as last Friday and weekly closing near the higher levels of this 14 sessions range therefore firstly sustaining beyond last 14 sessions highest(17600) should be watched in next week for strong rally above 17600 after last 14 sessions range breaking out confirmation.
As good consolidation at lower levels in previous week and specially last Friday therefore it should be kpt in mind that until complete selling will not develop till then Nifty will not sustain below above mentiond supports and fresh consolidation within or near about next resistance(17552-17600) will generate strong rally above 17600.
Nifty-Intra Day Chart Analysis
(10-Dec-2021)
Nifty-Intra Day Chart (10-Dec-2021):-
Technical Patterns formation in today intraday charts
1- First 4 hours down moves in Bullish Falling Channels
2- Consolidation between 17406-17430(immediate supports)
3- Up moves with downward corrections
4- Whole day actual trading between 17406-17534
Conclusions from intra day chart analysis
As first 4 hours down moves were in Bullish Falling Channels and after that lower levels consolidation also between 17406-17430 therefore this range will be immediate and strong supports of Nifty because immediately after that last 2 hours up moves were with downward corrections also.
In this manner last Friday whole day trading will be understood with consolidation patterns formations and resultant firstly up moves will be seen above last Friday highest(17534) in the beginning of next week and until complete selling will not develop till then Nifty will not sustain below last Friday lowest(17406).
Conclusions
(After putting all studies together)
Wave-A of "ABC" correction started after impulsive Wave-5 completion at 18604.50 on 19-10-2021 which is in continuation after its recent bottom formations at at 16782.40 on 29-11-2021. Now Pull Back Rally continuation with recent top formation at 17543.3 on 09-12-2021 and no confirmation of its completion yet.
As good intraday consolidation last Friday therefore firstly up moves will be seen towards last 14 sessions highest(17600) but complete consolidation is required for sustaining above it because strong resistances are lying just below it between 17552-17600. Firstly sustaining above 17600 should be watched in next week because that will generate strong rally after 14 sessions trading range breaking out confirmations. Resistances above 17600 are as follows;-
1-17753-17816
2-17959-18005
3-18070-18133
4-18169-18193
Short Term indicator "Stochastic" has turned overbought and Short Term correction is on cards as well as it may start any day. As its first indication will come after fresh selling patterns formation on intraday charts therefore it should also be watched in next week. Remain cautious and firstly sustaing beyond 17600 should be watched in next week for the confirmation of life and length of on going Pull Back Rally.