Deeper correction beginning expectations
Technical Analysis,Research & Weekly
Outlook(Jan 03 to Jan 07,2022)
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (31-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 and corrective Wave-A of "ABC' correction beginning.
2- Corrective Wave-A of "ABC" correction continuation with recent bottom formations at 16410.20 on 20-12-2021 and no confirmation of its completion yet.
3- Pull Back Rally continuation with recent top formation at 17400.80 on 31-12-2021
4- Stochastic- Both %K(5) line and %D(3) line are kissing in Over bought zone.
5- Stochastic:- %K(5)- 87.32 & %D(3)- 87.56.
6- In MACD- Both MACD line and Average line are kissing in negative zone.
7- MACD(26,12)- -136.71 & EXP(9)- -134.98 & Divergence- -01.73
8- Down moves below falling trend line
Conclusions from EOD chart analysis
(Stochastic & MACD)
As both lines of Stochastic are kissing in Over bought zone and both lines of MACD are also kissing in negative zone as well as Nifty is just below falling trend line therefore it will be understood that on going previous 10 sessions Pull Back rally is technically well prepared for its correction which will start any day in the coming week.
Nifty-Last 18 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Dec 08 to Dec 31,2021):-
Technical Patterns formation in last 18 Sessions intraday charts
1- Selling(Resistances) in last 18 Sessions are as follows:-
A- 17365-17421
B- 17552-17639
2- Consolidation(Supports) in last 18 Sessions are as follows:-
A- 16884-17093
B- 16820-16918
C- 16739-16782
D- 16411-16530
3- 3 Sessions Mixed Patterns formations between 17177-17273
4- Last 18 Sessions actual trading between 16411-17639
Conclusions from 18 Sessions
intra day chart analysis
Last 18 Sessions actual trading between 16411-17639 with above mentioned supports and resistances and last Friday closing was near the higher levels of this range after 10 previous sessions rally. As both higher levels selling and lower levels buying in last 18 sessions therefore firstly Nifty will have to trade and prepare for next trend within this range. Let Nifty prepare then will be decided according to coming sessions intraday trading patterns formations.
Although Mixed Patterns formations was seen in the 3 sessions of previous week between 17177-17273 but Nifty closed well above it at 17354.05 last Friday with higher levels some selling therefore firstly sustaining beyond 17273 should also be watched in next week for correction beginning confirmation of on going last 10 sessions Pull back rally.
Nifty-Intra Day Chart Analysis
(31-Dec-2021)
Nifty-Intra Day Chart (31-Dec-2021):-
Technical Patterns formation in today intraday charts
1- 97 Points jump in first 2 minutes after positive opening
2- Sideways trading between 17324-17360
3- Selling between 17362-17400(Immediate Resistance)
4- Whole day actual trading between 17239-17400
Conclusions from intra day chart analysis
Although 97 points jump in first 2 minutes after positive opening and after that 2 hours sideways trading also but higher levels selling was also seen between 17324-17360 therefore this range will be immediate resistance of Nifty and firstly Nifty has to consolidate for decisive up moves beginning above 17400.
Remain cautious also in next week because fresh selling within or near about 17324-17360 in the beginning of coming week will mean decisive down moves beginning and its confirmation will be sustaining below 17324.
Conclusions
(After putting all studies together)
1- Long Term Trend is up.
2- Intermediate Term Trend is down.
3- Short Term Trend is sideways between 16411-17400.
Last 10 Sessions Pull Back rally continuation with recent top formation at 17400.80 on 31-12-2021 and no confirmation of its completion yet on EOD charts but following developments are suggesting that its correction is on cards which will be seen in next week despite last Friday closing was at its top.
1- Overbought indicators.
2- both lines are kissing in Stochastic and MACD.
3- Higher levels selling on 31-12-2021.
4- Mixed Patterns formations between 17177-17273 in the 3 sessions of previous week.
Sustaining beyond 17177 should be firstly watched in next week for the life and length of last 10 sessions rally amid deeper correction beginning expectations towards/below above mentioned next supports.