Sideways trading for next big moves preparation

Technical Analysis,Research & Weekly Outlook

(May 17 to May 21,2021)

Nifty-EOD Chart Analysis 

(Stochastic & MACD)

Nifty-EOD Chart (14-May-2021):-

Technical Patterns and Formations in EOD charts

1- Bullish flag pattern formation in last 68 sessions sideways trading between 14152-15431

1- Stochastic %K(5) is at 40.52 & %D(3) is at 64.04

2- Stochastic- %K(5) line has intersected %D(3) line downward and moving towards Oversold zone

3- MACD line is above Average line but its both lines has flattened.

4- Last 68 sessions sideways trading between 14152-15431 

 

Conclusions from EOD chart analysis

(Stochastic & MACD)

As Bullish flag pattern has been developed in the last 68 sessions sideways trading between 14152-15431 therefore on going Wave-4 correction completion possibility within or near about this range can not ruled out but its confirmation will be after sustaining above or forceful break out of 15431.

As in Stochastic Indicator %K(5) line has intersected %D(3) line downward and moving towards Oversold zone therefore indications of some more down moves below last week lowest(14591)in next week.

Although in MACD Indicator MACD line is above Average line and showing upward trend also but its both lines has flattened therefore creating cautioning signals. Let these lines move towards any side then next Short Term trend will get confirmations accordingly.

Nifty-Last 13 sessions 

intraday charts analysis

Nifty-Intra Day Chart (Apr 27 & May 14,2021):-

Technical Patterns formation in last 13 sessions intraday charts

1- Selling(Resistances) in last 13 Sessions  are as follows:-

A- 14728-14777

B- 14824-14900

C- 14929-14957

D- 15010-15044

2- Consolidation(Supports) in last 13 Sessions are as follows:-

A- 14477-14567

B- 14452-14472

3- Mixed Patterns formation between 14592-14749 on 14-05-2021

4- 13 Sessions sideways trading between 14417-15044   

Conclusions from 13 sessions intra day chart analysis 

Last 68 sessions sideways trading between 14152-15431 and Nifty is trading between 14417-15044 for the last 13 sessions. 

As above mentioned equally strong supports and resistances are lying above and below last Friday closing therefore Nifty will firstly trade and prepare for next decisive moves within this 13 sessions trading range(14417-15044) and sustaining beyond/forceful break out of this range will indicate first strong signal of next big moves beginning hence should be firstly watched in the coming week/weeks 

Nifty-Intra Day Chart Analysis

(14-May-2021)

Nifty-Intra Day Chart (14-May-2021):-

Technical Patterns formation in today intraday charts

1- Sharp fall

2- Selling between 14664-14726

3- Sharp fall

4- Up moves with downward corrections

5- Whole day actual trading between 14592-14749

Conclusions from intra day chart analysis 

As all the Asian markets were trading with good gains last Friday morning therefore Indian markets positive opening but not sustaining and sharp fall was seen. Although strong 100 points recovery from lower levels but after that almost 2 hours selling hence again sharp fall was seen. As last more than 3 hours up moves with downward corrections which means that some buying also therefore last Friday whole day trading will be understood with Mixed Patterns formation and firstly sustaining beyond last Friday trading range(14592-14749) should be watched in next week for first signal of next decisive moved beginning.

Conclusions 

(After Putting All Studies Together)

1- Long Term Trend is up.

2- Intermediate Term Trend is sideways between 14152-15431 for the last 68 sessions.

3- Short Term Trend is sideways between 14417-15044 for the last 13 sessions.

Supports are resistances between last 13 sessions trading range has been updated above and:- 

1- Next resistances above last 13 sessions highest(15044) are as follows:-

A- 15158-15196

B- 15201-15241  

C- 15262-15319

D- 15335-15421

2- Next supports below last 13 sessions lowest(14417) are as follows:-

A- 14316-14354

B- 14192-14294

As Bullish flag pattern formation is being developed in last 68 sessions sideways trading therefore indications of upward break out of this range but let it happen then will get confirmation.

As Nifty is not trending and trading sideways for 68 like big sessions therefore it will be understood that Nifty is preparing for next big moves within this range(14152-15431). Above mentioned equally strong supports and resistances have been developed above and below last Friday closing therefore expected that Nifty will trade and prepare for next big moves within this range in next week also.

Down moves towards next supports

Nifty-Intra Day Chart Analysis & 

Market Outlook(14-05-2021)

Nifty-Intra Day Chart (12-May-2021):-

Technical Patterns formation in today intraday charts

1- Sharp fall after weak opening

2- Selling between 14728-14777

3- Sharp fall in last hour

3- Whole day actual trading between 14650-14824

Conclusions from intra day chart analysis 

As firstly sharp fall after weak opening and after that more than 5 hours selling therefore again sharp fall in last hour and closing was near the lower levels of the day. Good selling  last Wednesday and no consolidation therefore down moves towards following next supports will be seen in the coming sessions:-

1- 14612-14648

2- 14477-14567

3- 14452-14472

Crucial levels will confirm next 

more than 2% one sided moves

Nifty-Intra Day Chart Analysis & 

Market Outlook(12-05-2021)

Nifty-Intra Day Chart (11-May-2021):-

Technical Patterns formation in today intraday charts

1- 50 Points jump in first 15 minutes after gap dpwn opening

2- Selling between 14870-14900

3- Sideways trading between 14824-14856

4- Whole day actual trading between 14772-14900

Conclusions from intra day chart analysis 

Although Nifty closed 119 points up near the higher levels of the day yesterday but following lines were told in "Watch lower levels for expected down moves beginning confirmations":-

1- down moves possibilities increased today

2- if more selling develops tomorrow then decisive down moves will be seen below today lowest because selling patterns were seen last Friday also.

As was told yesterday 100% same happened and Nifty slipped firstly 170 points after gap down opening but jumped 50 Points also in first 15 minutes. 

Although some selling at higher levels but sideways trading was seen between 14824-14856 in first and last 2 hours which is between last Friday selling range(14820-14863). 

As Nifty traded more than 5 hours and closed between 14820-14863 last Friday and today therefore this range has become most crucial and next big moves decider also. Forceful break out or sustaining beyond 14820-14863 should be firstly watched tomorrow for more than 2% one sided moves confirmations.

Watch lower levels for expected down moves beginning confirmations

Nifty-Intra Day Chart Analysis 

& Market Outlook(11-05-2021)

Nifty-Intra Day Chart (10-May-2021):-

Technical Patterns formation in today intraday charts

1- Slipping in first hour

2- Up moves in Bearish Rising Channels in Mid-session

3- Sideways trading in last hour between 14929-14952

4- Whole day actual trading between 14893-14966

Conclusions from intra day chart analysis 

Although gap up strong opening and whole day Green zone trading also but selling was  seen through up moves in Bearish Rising Channels in Mid-session therefore firstly sustaining beyond today trading range(14893-14966) should be watched tomorrow for next decisive moves beginning beginning confirmations because selling parrens were seen today within resistance range(14871-14957)

As follow up selling within resistance range(14871-14957) today and if more selling develops tomorrow then decisive down moves will be seen below today lowest because selling patterns were seen last Friday also.

As down moves possibilities increased today therefore firstly sustaining below last hour sideways trading range lowest(14929) and finally sustaining below today lowest(14893) should be watched tomorrow for expected down moves beginning confirmations.