Bullish Rally continuation with only a Short Term correction possibility

Technical Analysis,Research & Weekly 

Outlook(May 31 to Jun 04,2021)

Nifty-EOD Chart Analysis 

(Waves structure)

Nifty-EOD Chart (28-May-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 after new life time top formation 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 15469.65 on 28-05-2021

Conclusions from EOD chart analysis

(Waves structure)

Impulsive Wave-5 of that Waves structure continuation which started from 7511.10 on 24-03-2020. As previous life time top of Wave-3(15431.8) broken out and new life time top formation at 15469.65 on 28-05-2021 as well as no selling patterns formation on EOD charts therefore Impulsive Wave-5 will remain continued. 

Nifty-EOD Chart Analysis

(Wave-4 Wave structure)

Nifty-EOD Chart (28-May-2021):-

Technical Patterns and Formations in EOD charts

1- 73 sessions Bullish flag upward broken out confirmations

2- Impulsive Wave-3 completion at 15431.8 on 16-02-2021 and Wave-A of Wave-4 beginning

3- Wave-A completion at 14467.8 on 26-02-2021

4- Wave-B completion at 15336.3 on 12-03-2021

5- Corrective Wave-C of Wave-4 completion at 14151.4 on 22-04-2021 and Impulsive Wave-5 beginning  

6- Impulsive Wave-5 continuation with recent high and formation at 15469.65 on 28-05-2021

Conclusions from EOD chart analysis

(Wave-4 structure)

As 73 sessions "ABC" correction of Wave-4 was with Bullish flag formation and deeper correction like 2020 was not seen despite too much worse condition of Corona in India therefore upward broken out of Bullish Flag was seen after Wave-4 completion at 14151.4 on 22-04-2021.

Impulsive Wave-5 formations confirmations with 73 sessions like big trading range broken out therefore it will remain continued in the coming weeks/months. As Short to Intermediate Term corrections are the nature of Bull markets and those will be seen time to time but rally will remain continued. 

Nifty-EOD Chart Analysis 

(MACD & Stochastic)

Nifty-EOD Chart (28-May-2021):-

Technical Patterns and Formations in EOD charts

1- 73 sessions Bullish flag upward broken out confirmations

1- Stochastic %K(5) is at 91.18 & %D(3) is at 88.42

2- Stochastic- %K(5) line has intersected %D(3) line upward and both lines rising in Overbought zone

3- MACD line is above Average line and its both lines are rising in positive zone.

 

Conclusions from EOD chart analysis

(Stochastic & MACD)

As last 6 sessions continuous up moves and any correction not seen therefore Short Term Indicator Stochastic has turned completely Overbought and ready for Short Term correction but clear selling patterns have not been seen on Eod charts yet therefore let it happen first then it will be seen.

As rally continuation and in MACD Indicator both lines are moving upward in positive zone after MACD line upward intersection of Average line therefore it is showing up trend and rally continuation possibilities.

Conclusions

(After Putting All Studies Together)

All the trends are up,impulsive Wave-5 continuation and no indication of its completion on EOD charts. 

Indian markets have shown huge strength because any type of Wave-4 big correction was not seen despite devastating Corona condition in India therefore Indian markets will be understood completely Bullish and impulsive Wave-5 Rally will remain continued.

Although Short Term Indicator Stochastic has turned completely Overbought and ready for Short Term correction but no big indication of any correction on EOD charts except Doji Candle formation last Friday. Let clear selling patterns develop and Nifty to sustain below last Friday lowest(15395) then Short Term correction will be considered and now it is on cards also because sentiment is too much heated after last 26 sessions strong rally.

 Last resistances will confirm 

next decisive moves

Nifty-Intra Day Chart Analysis & 

Market Outlook(28-05-2021)

Nifty-Intra Day Chart (27-May-2021):-

Technical Patterns formation in today intraday charts

1- Down moves in Bullish Falling Channel

2- Consolidation between 15280-15296

3- Selling between 15334-15360

4- Consolidation between 15273-15307

5- Sharp up in last half hour

6- Whole day actual trading between 15273-15384

Conclusions from intra day chart analysis 

As good selling at higher levels yesterday therefore firstly consolidation was seen through Down moves in Bullish Falling Channel and between 15280-15296 then up moves were seen. 

Although higher levels selling developed and after that down moves with new intraday lowest formation also but again lower levels consolidation developed between 15273-15307 therefore sharp up in last half hour. Last resistances of Nifty are between 15335-15421 and fresh selling within this range,consolidation below it and closing was seen within it today. 

As both intraday buying selling therefore whole day today trading will be understood with Mixed Patterns formation hence Nifty will firstly trade and prepare for next decisive moves between 15273-15421 and finally sustaining below 15273 will confirm short term correction and sustaining above 15421 will mean strong rally with new life time highest formations.

Post-open Outlook(27-05-2021)

As sellinmg yesterday therefore firstly Nifty slipped and consolidated first 30 minutes in negative zone then moves up. CNXIT is trading more than 1.5% up and at new life time highest also therefore sentiment boosted and up moves are being seen today. 

Last resistances of Nifty are between 15335-15421 and Nifty is now trading within this range. This range break out will confirm short term correction below 15335 and strong rally above 15421.

 Slipping below today lowest

Nifty-Intra Day Chart Analysis & 

Market Outlook(27-05-2021)

Nifty-Intra Day Chart (26-May-2021):-

Technical Patterns formation in today intraday charts

1- Up moves with downward corrections

2- More than 4 hours up moves in Bearish Rising Channel

3- Whole day actual trading between 15195-15319

Conclusions from intra day chart analysis 

Although first 2 hours some buying through up moves with downward corrections but last more than 4 hours good selling through up moves in Bearish Rising Channel therefore expected that Nifty will not sustain above 15300 and will slip below today lowest(15195) despite today closing was near the higher levels of the day with 93 gains and above 15300. 

As Dow Jones Futures is now trading more than with 90 points gains and European markets are also flat as well as most Asian markets closed in Green today therefore some volatility may be seen tomorrow morning but expected that finally Nifty will slip below 15195 tomorrow.

 Levels will confirm next 

Short Term moves

Nifty-Intra Day Chart Analysis & 

Market Outlook(26-05-2021)

Nifty-Intra Day Chart (25-May-2021):-

Technical Patterns formation in today intraday charts

1- Selling between 15233-15293

2- Down moves in Bullish Falling Channel

3- Sideways trading between 15198-15221

4- Whole day actual trading between 15164-15293

Conclusions from intra day chart analysis 

Following lines were told at 12:39 AM on 25-05-2021 in " Firstly watch today trading range for next Short Term moves confirmations":-

expected that Nifty will trade and prepare for next decisive moves within today trading range

Yesterday trading range was 15146-15256 and Nifty traded in last 3 hours as well as closed within this range at 15208.45 today

As all the Asian markets were trading with good gains today morning therefore strong opening of Indian markets but selling developed hence down moves were seen in Mid-session. As these down moves were in Bullish Falling Channel therefore supports formations at lower levels and last hour sideways trading between 15198-15221 after little up moves

Both higher levels selling and lower levels supports therefore today trading will also be understood with Mixed Patterns formation like yesterday therefore Nifty will trade and prepare for next decisive moves within last 2 sessions trading range(15146-15293) and finally sustaining beyond this range will confirm next Short Term moves which should be firstly watched in the coming sessions. 

 Firstly watch today trading range for next Short Term moves confirmations

Nifty-Intra Day Chart Analysis & 

Market Outlook(25-05-2021)

Nifty-Intra Day Chart (24-May-2021):-

Technical Patterns formation in today intraday charts

1- Down moves in Bullish Falling Channel

2- Selling between 15201-15229

3- Down moves in Bullish Falling Channels

4- Consolidation between 15189-15214

5- Volatility in last hours

6- Down moves in Bullish Falling Channel

7- Whole day actual trading between 15146-15256

Conclusions from intra day chart analysis 

As whole day trading was with both consolidation and selling patterns formations and Volatility in last hours also therefore whole day today trading will be understood with Mixed Patterns formation between 15189-15214 therefore expected that Nifty will trade and prepare for next decisive moves within today trading range and finally sustaining beyond today trading range will confirm next Short Term moves which should be firstly watched tomorrow.