Last 18 sessions lowest will confirm the life and length of on going correction
Technical Analysis,Research & Weekly Outlook
(Nov 15 to Nov 18,2021)
Nifty-Weekly Chart Analysis
(Waves,Stochastic & MACD)
Nifty-Weekly Chart(12-Nov-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 at 15431.8 on 16-02-2021
5- Corrective Wave-4 completion at 14151.4 on 22-04-2021
6- Impulsive Wave-5 completion indication after recent high and new life time top formation at 18604.50 on 19-10-2021
7- Short Term correction continuation with recent bottom formation at 17613.10 on 29-10-2021.
8- Last 4 weeks and 18 Sessions sideways trading between 17453-18604
9- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling towards Over sold zone.
10- Stochastic- %K(5) is at 33.72 & %D(3) is at 43.80.
11- In MACD- MACD line has intersected Average line downward. Its MACD line is moving down in positive zone while its Average line is moving up in positive zone .
Conclusions from Weekly chart analysis
(Waves,Stochastic & MACD)
Impulsive Wave-1 which started after Corrective Wave-C completion at 7511.10 on 24-03-2020 remained continued almost 19 months and its 5th Wave completion indications have also emerged on 19-10-2021 after new life time top formation at 18604.50 because now last 4 weeks and 18 Sessions long correction continuation with recent bottom formation at 17613.10 on 29-10-2021.
As in weekly Stochastic %K(5) line has intersected %D(3) line downward and its both lines are falling towards Over sold zone which means that Stochastic has not turned Oversold yet therefore indications of more down moves in the coming week/weeks.
In weekly MACD indicator MACD line has intersected Average line downward and its MACD line is moving down therefore downward trend formation indications have emerged but its Average line is moving up also hence it is signalling that MACD will give downward trend formation confirmations after some time and more selling patterns formations.
Nifty-Last 29 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Oct 01 to Nov 12,2021):-
Technical Patterns formation in last 29 Sessions intraday charts
1- Selling(Resistances) in last 29 Sessions are as follows:-
A- 18289-18334
S- 18379-18458
C- 18548-18604
2- Consolidation(Supports) in last 29 Sessions are as follows:-
A- 17984-18046
B- 17716-17763
C- 17641-17704
D- 17453-17550
3- Last 29 Sessions trading between 17453-18604
Conclusions from 29 Sessions
intra day chart analysis
Nifty is trading between 17453-18604 for the last 29 sessions with above mentioned supports and resistances which are equally strong and nifty closed almost in the middle of this range last Friday therefore Nifty will trade and prepare for next trend within this range. As 29 sessions like big range and finally sustaining it beyond will generate big moves therefore should be watched in the coming week/weeks for its confirmations.
Nifty-Intra Day Chart Analysis
(12-Nov-2021)
Nifty-Intra Day Chart (12-Nov-2021):-
Technical Patterns formation in today intraday charts
1- Down moves in Bullish Falling Channel
2- Up moves with downward corrections
3- Whole day actual trading between 17906-18123
Conclusions from intra day chart analysis
Although 100 points up after strong opening but after that more than 1 and half hour down moves were also seen last Friday. As these down moves were in Bullish Falling Channel therefore after that strong rally developed which was with downward corrections also hence was near the higher levels of the day.
As whole day good intraday consolidation last Friday therefore up moves will remain continued in the beginning of next week but intraday correction will also be seen because Very Short Term Indicators have turned Over bought and its cooling down is also required through intraday corrections.
Conclusions
(After putting all studies together)
1- Long Term Trend is up.
2- Intermediate Term Trend is sideways between 17453-18604 for the last 29 Sessions.
3- Short Term Trend is down.
As per above given Nifty Waves structure maximum target of Nifty is at 18793.00 and it was posted in following topics of previous weekly outlooks:-
1- On 16-10-2021 we posted this topic- "Remain cautious because maximum target of Nifty is at 18793.00"
2- On 25-09-2021 we posted this topic- "Wave-5 Rally continuation towards its maximum target at 18793"
As on going correction started from 18604.50 on 19-10-2021 and it is below 18793.00 therefore Nifty is honouring this Waves structure till now which means that given Waves structure is still valid. Last 18 sessions on going correction lowest is at 17613.10 and if Nifty slips below it without moving above 18793.00 then that will generate stronger indications of deeper correction beginning because it will confirm Intermediate Term Trend turning down confirmations also after breaking down of 55-Day SMA which is today at 17705.40.
As weekly Stochastic is suggesting more down moves possibility and weekly MACD has started to show downward trend formation indications therefore firstly sustaining beyond last 18 sessions lowest(17613.10) should be watched in the coming week/weeks for the life of on giong correction confirmations because its valid break down will mean deeper "ABC" correction beginning confirmations.
