Wave-5 Rally continuation towards its maximum target at 18793

Technical Analysis,Research & Weekly 

Outlook(Sep 27 to Oct 01,2021)

Nifty-EOD Chart Analysis

(Waves structure)

Nifty-EOD Chart (24-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- Wave-1 gained 4283.20 points  

4- Corrective Wave-2 completion at 10790.20 on 24-09-2020

5- Impulsive Wave-3 completion at 15431.8 on 16-02-2021

6- Wave-3 gained 4641.60 points

7- Corrective Wave-4 completion at 14151.4 on 22-04-2021

8- Impulsive Wave-5 continuation with recent high and new life time top formation at 17947.65 on 24-09-2021

Conclusions from EOD chart analysis

(Waves structure)

Impulsive Wave-5 continuation in full force with recent high and new life time top formation at 17947.65 on 24-09-2021 and no indication of Wave-5 completion yet on EOD and intraday chartS except Doji Black Candle formation last Friday.

Nifty-EOD Chart Analysis

(Stochastic & MACD)

Nifty-EOD Chart (24-Sep-2021):-

Technical Patterns and Formations in EOD charts

1- Impulsive Wave-5 continuation with recent high and new life time top formation at 17947.65 on 24-09-2021

2- Stochastic- %K(5) is at 76.00 & %D(3) is at 58.62

3- Stochastic- %K(5) line has intersected %D(3) line upward and both lines are moving towards Over bought zone.

4- Stochastic is showing negative divergence.

5- In MACD- MACD line has intersected Average line downward and its both lines are moving downward in positive zone.

6- MACD is showing negative divergence.

Conclusions from EOD chart analysis

(Stochastic & MACD)

As in Stochastic %K(5) line has intersected %D(3) line upward and both lines are moving towards Over bought zone therefore indications of some up moves but %K is just below Overbought zone and this indicator is showing negative divergence also hence Short Term Correction may begin after some up moves.

As in MACD both lines are falling in positive zone after MACD line downward intersection of Average line therefore MACD is indicating downward trend formations and its possibility increases also because this indicator is showing negative divergence as well.

 

Conclusions

(After Putting All Studies Together)

All the trends are up and Bullish rally continuation forcefully in the form of Impulsive Wave-5 and no indication of its completion yet on EOD Charts except Over bought Weekly indicators. 

As Short term indicators are showing signals of Short Term correction but after some more up moves and more selling patterns formations therefore let fresh selling firstly develop in next week then Short Term correction beginning will be considered accordingly.

As per above given Waves structure maximum target of Nifty is at 18793.00 and its calculations are as follows:-

As per Elliott Wave theory "Wave-3 should not be shorter than both Wave-1 and Wave-5. Now impulsive Wave-5 is on and it should not gain more points than Wave-3 has gained.

Impulsive Wave-1 gained=4283.20 points(11794.30-7511.10)

Impulsive Wave-3 gained=4641.60 points(15431.80-10790.20)

Impulsive Wave-5 has gained 3796.25 points till 24-09-2021(17947.65-14151.40)

As according to Elliott Wave theory Wave-5 can not gain more points than Wave-3 gained therefore on going impulsive Wave-5 will gain lesser points than 4641.60.

Impulsive Wave-5 started from 14151.4 on 22-04-2021 and it has to gain less than 4641.60 points therefore maximum target of on going impulsive Wave-5 is 18793.00(14151.40+4641.60)

As some higher levels good intraday selling was seen therefore Doji Black Candle was formed last Friday hence firstly sustaining beyond last Friday trading range(17819-17947) should be firstly watched in the beginning of next week for immediate rally towards 18793.00 after sustaining above 17947 or Rally after Short term correction after sustaining below 17819. Next supports below 17819 are as follows:-

1- 17360-17411

2- 17280-17305

3- 17213-17270 

  

We posted following topic telling maximum of Nifty at 18793.00 on 07-08-2021 also when previous closing of Nifty was at 16238.20 on 06-08-2021:-

"Impulsive Wave-5 rally towards its maximum target at 18793 after Short Term correction completion"

 Rally continuation with little 

deeper corrections possibility

Nifty-Intra Day Chart Analysis & 

Market Outlook(24-09-2021)

Nifty-Intra Day Chart (23-Sep-2021):-

Technical Patterns formation in today intraday charts

1- Whole day up moves with downward corrections

2- Whole day actual trading between 17647-17843

Conclusions from intra day chart analysis 

As FOMC announcements led strong US markets rally yesterday and Dow Jones Futures was trading more than 100 points up today morning also therefore most Asian markets were trading with good gains hence strong opening of Indian markets today morning. 

Whole day today up moves were with downward corrections and today closing was at life time highest after new life time top formations and intraday selling patterns were not seen therefore rally will remain continued. As sentiment has turned heated after strong rally of today therefore little deeper corrections may also be seen.

 Firstly watch 17524-17610 

amid mixed cues

Nifty-Intra Day Chart Analysis & 

Market Outlook(23-09-2021)

Nifty-Intra Day Chart (22-Sep-2021):-

Technical Patterns formation in today intraday charts

1- Slipping after positive opening

2- Selling between 17571-17610

3- Whole day actual trading between 17524-17610

Conclusions from intra day chart analysis 

As good selling between 17571-17610 therefore down moves are expected below today lowest(17524)  but SGX Nifty is trading more than 110 points up after more then 500 points strong rally in Dow Jones hence firstly sustaining beyond today trading range(17524-17610) should be firstly watched tomorrow amid these mixed cues.  

 17213-17622 will confirm next Short Term trend

Nifty-Intra Day Chart Analysis & 

Market Outlook(22-09-2021)

Nifty-Intra Day Chart (21-Sep-2021):-

Technical Patterns formation in today intraday charts

1- Down moves with upward corrections 

2- Up moves with downward corrections

3- Whole day actual trading between 17327-17578

Conclusions from intra day chart analysis 

Although firstly 70 points down moves with upward corrections but getting supports just above yesterday mentioned 1st supports range(17280-17305) and after that last 4 hours up moves with downward corrections and closing as well as today highest formations within yesterday selling range(17512-17622).

As Nifty has honoured both immediate supports and resistances therefore expected that Nifty will again trade between immediate supports and resistances(17213-17622) as well as prepare for next decisive moves beyond this range. Finally sustaining beyond/forceful break out of 17213-17622 will confirm next Short Term trend hence should be watched in the coming sessions. 

 Slipping towards next supports

Nifty-Intra Day Chart Analysis & 

Market Outlook(21-09-2021)

Nifty-Intra Day Chart (20-Sep-2021):-

Technical Patterns formation in today intraday charts

1- Selling between 17512-17622

2- Down moves till last minutes

3- Whole day actual trading between 17361-17622

Conclusions from intra day chart analysis 

Following lines were told on 18-09-2021 in "Short Term correction towards next supports amid Sideways market turning expectations":-

1- some down moves expectations in the beginning of next week. 

2- down moves will be seen below last Friday lowest(17538) in the beginning of next week.

3- Short Term correction expectations towards above mentioned supports in the beginning of next week.

As was told 100% same happened and Nifty 

closed 188 points down today.

As more than 4 hours good selling therefore down moves were seen till last minutes and more than 1% negative closing also but Nifty hovered around last Saturday posted 3rd support range(17370-17394) in last minutes.

Following supports are lying below today lowest:- 

1- 17280-17305

2- 17213-17270

As consolidation patterns were not seen and only selling developed therefore Nifty may slip towards above mentioned supports but finally sideways market is expected between 17280-17512 tomorrow.