Deeper correction towards
next supports
Technical Analysis,Research & Weekly Outlook
(Jan 17 to Jan 21,2022)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (14-Jan-2022):-
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 after new life time top formation at 18604.50 on 19-10-2021 and corrective Wave-A of "ABC' correction beginning.
7- Corrective Wave-A of "ABC" correction completion at 16410.20 on 20-12-2021
8- Wave-B continuation with recent top formation at 18286.95 on 14-01-2022 and no confirmation of its completion yet.
Conclusions from EOD chart analysis
(Waves structure)
Bullish rally which started through its Impulsive Wave-1 from 7511.10 on 24-03-2020 completed from its 5th Wave after new life time top formation at 18604.50 on 19-10-2021 and corrective Wave-A of "ABC' correction begun which completed at 16410.20 on 20-12-2021.
Now Wave-B continuation with recent top formation at 18286.95 on 14-01-2022 and no confirmation of its completion yet on EOD charts.
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (14-Jan-2022):-
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 completion at 16410.20 on 20-12-2021
3- Wave-B continuation with recent top formation at 18286.95 on 14-01-2022 and no confirmation of its completion yet.
4- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling in bought zone.
5- Stochastic is showing negative divergence
6- Stochastic:- %K(5)- 96.69 & %D(3)- 95.97.
7- In MACD- MACD line has intersected Average line upward and its both lines are rising in positive zone.
8- MACD(26,12)- 550.41 & EXP(9)- 314.89 & Divergence- 235.52
Conclusions from EOD chart analysis
(Stochastic & MACD)
As in Stochastic both lines are kissing in over bought zone and this indicator is in over bought zone since long therefore if down moves starts then sharp fall will be seen in next week.
As in MACD MACD line has intersected Average line upward and its both lines are rising in positive zone therefore it showing upward trend formations.
Conclusion from these 2 indicators is that Short Term correction is very much due which will start any day in next week but will not be deep because in MACD both lines are rising in positive zone and its has not given any indication of downward trend formation.
Nifty-Intra Day Chart Analysis
(14-Jan-2022)
Nifty-Intra Day Chart (14-Jan-2022):-
Technical Patterns formation in today intraday charts
1- 137 Points sharp fall in first 3 minutes
2- More than 110 points jump from lower levels in first 40 Minutes
3- Down moves with upward corrections
4- Up moves in Bearish Rising Channels
5- Whole day actual trading between 18120-18286
Conclusions from intra day chart analysis
Although firstly 137 points sharp fall in first 3 minutes but after that more than 110 points jump also from lower levels in first 40 Minutes therefore first hour trading was highly volatile last Friday
As firstly down moves were with upward corrections and after that whole day up moves were in Bearish Rising Channels therefore good intraday selling patterns formations last Friday hence expected that down moves will be seen below last Friday in the beginning oof next week.
Conclusions
(After putting all studies together)
All the trends are up and Wave-B continuation with recent top formation at 18286.95 on 14-01-2022 and no confirmation of its completion yet on EOD charts.
As short Term indicator Stochastic is in over bought zone since long and its both lines are kissing therefore emergence of Short Term correction beginning strong indications which will start any day in next week.
Union Budget 2022 is scheduled on 01-02-2022 and on going rally is on the back of market favouring Budget. Last 20 sessions rally which started from 16410.20 and on 20-12-2021 is in continuation without any significant correction. As Short Term indicators are completely overbought and good intraday selling patterns formations also last Friday therefore expected that deeper correction will be seen towards following supports in next week:-
1- 17965-18025
2- 17902-17945
3- 17740-17788
4- 17657-17721
5- 17332-17371
6- 17192-17241