17498 will confirm correction towards and below the bottom of Wave-A(16410.20)
Technical Analysis,Research & Weekly
Outlook(Feb 07 to Feb 11,2022)
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (04-Feb-2022):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-A of "ABC" correction completion at 16410.20 on 20-12-2021
2- Wave-B completion at 18351.00 on 18-01-2022 and and Wave-C beginning
3- Wave-C continuation with recent bottom formation at 16836.8 on 25-01-2022
4- Budget-2022 rally completion at 17794.6 on 02-02-2022
5- In Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling from Over bought zone.
6- Stochastic:- %K(5)- 71.72 & %D(3)- 81.52.
7- In MACD- MACD line has intersected Average line downward and its both lines are falling in negative zone.
8- MACD(26,12)- -364.42 & EXP(9)- -113.06 & Divergence- -251.36
Conclusions from EOD chart analysis
(Stochastic & MACD)
Wave-C of "ABC" correction continuation with recent bottom formation at 16836.8 on 25-01-2022. From this level Budget-2022 rally started which completed at 17794.6 on 02-02-2022 and after that down moves begun which are in continuation with recent bottom formations at 17462.5 on 04-02-2022.
In Stochastic both lines are falling from Over bought zone after %K(5) line downward intersection of %D(3) line therefore suggesting more down moves possibilities.
In MACD MACD line has intersected Average line downward and its both lines are falling in negative zone therefore showing downward trend formations and showing more down moves in the coming week also.
Nifty-EOD Chart Analysis
(Bollinger Band)
Nifty-EOD Chart (04-Feb-2022):-
Technical Patterns and Formations in EOD charts
1- Budget-2022 rally faced resistance at Middle Band
2- Down moves started towards Lower Band
Conclusions from EOD chart analysis
(Bollinger Band)
As Budget-2022 rally faced resistance at Middle Band and after that down moves started towards Lower Band therefore indications of Nifty slipping towards the lowest of Pre-Budget rally at 16836.8.
Nifty-Last 4 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Feb 01 to Feb 04,2022):-
Technical Patterns formation in last 4 Sessions intraday charts
1- More than 11 hours sideways trading between 17498-17622 on Budget day(1st Feb) and last Friday(4th Feb)
2- Selling(Resistances) on 03-02-2022:-
A- 17607-17635
B- 17648-17684
C- 17699-17731
D- 17736-17761
3- Last 4 Sessions actual trading between 17245-17794
Conclusions from 4 Sessions
intra day chart analysis
Nifty traded most time between 17498-17622 on Budget-2022 day and again traded most time within this this range last Friday(04-02-2022) as well as Nifty closed 3 days within this range of Feb-2022 also:-
1- Nifty closed at 17576.6 on 01-02-2022
2- Nifty closed at 17560.2 on 03-02-2022
3- Nifty closed at 17516.3 on 04-02-2022
As more than 11 hours sideways trading and above mentioned 3 previous sessions closing also between 17498-17622 therefore this range has become more crucial and next big moves decider as well. Good selling was seen within and above it on 03-02-2022 therefore once sustaining below it(17498) will mean deeper correction beginning hence should be firstly watched in next week for its confirmations.
Conclusions (After putting all studies together)
1- Short Term Trend is sideways.
2- Intermediate Term Trend is sideways.
3- Long Term Trend is up.
Pre/Post Budget rally and its termination also was seen in previous week. As last 2 sessions of previous week were affected by facebook negative news led depressing Global markets also therefore firstly sustaining beyond 11 hours sideways trading range(17498-17622) should be watched in next week for decisive moves beginning confirmations.
As above mentioned indicators are suggesting down moves possibilities therefore fresh selling and after that sustaining below 17498 will mean corrective Wave-C continuation confirmations towards and below the bottom of Wave-A(16410.20) which is expected also.