Finally levels will confirm next big moves amid firstly up moves expectations
Technical Analysis,Research & Weekly Outlook
(May 09 to May 13,2022)
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (06-May-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 completion at 16410.20 on 20-12-2021
3- Wave-B completion at 18351.00 on 18-01-2022.
4- Wave-C bottom formation at 15671.5 on 08-03-2022
5- Pull Back Rally completion at 18114.70 on 04-04-2022 and correction beginning.
6- Correction continuation with recent bottom formation at 16340.90 on 06-05-2022
7- Last more than 6 months sideways correction between 15672-18604
8- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling in Over sold zone.
9- Stochastic:- %K(5)- 07.23 & %D(3)- 17.05.
10- In MACD- MACD line has intersected Average line downward and its both lines are falling in negative zone.
11- MACD(26,12)- -371.79 & EXP(9)- -260.64 & Divergence- -111.15
Conclusions from EOD chart analysis
(Stochastic & MACD)
"ABC" correction started after Impulsive Wave-5 completion at 18604.50 on 19-10-2021 and still it is in continuation. As this whole correction turned sideways between 15672-18604 for the last more than 6 months therefore firstly break out/down of this trading range should be watched in the coming weeks/months for the life and length of on going this correction.
Although in Stochastic indicator its both lines are falling in Over sold zone but has not shown positive divergence and %K(5) line has not intersected %D(3) line upward therefore not confirming immediate up moves beginning but up moves may start in Short Term and Pull Back Rally beginning should be understood on Cards.
As in MACD indicator MACD line has intersected Average line downward and its both lines are falling in negative zone therefore confirming more down moves in Short Term.
Nifty-EOD Chart Analysis
(Averages)
Nifty-EOD Chart (06-May-2022):-
Technical Patterns and Formations in EOD charts
1- Averages:-
A- 5-Day SMA is today at 16789
B- 21-Day SMA is today at 17242
C- 55-Day SMA is today at 17075
D- 100-Day SMA is today at 17261
E- 200-Day SMA is today at 17245
2- Nifty closed below all the Short to Long Term Averages at 16340.90 on 06-05-2022
Conclusions from EOD chart analysis
(Averages)
As Nifty closed well below all the Short to Long Term Averages on 06-05-2022 and 5-Day SMA has also moved below all other Everages therefore confirming weakness in Indian markets.
Nifty-Intra Day Chart Analysis
(06-May-2022)
Nifty-Intra Day Chart (06-May-2022):-
Technical Patterns formation in today intraday charts
1- Whole day down moves in Bullish Falling Channels
2- Whole day actual trading between 16341-16484
Conclusions from intra day chart analysis
Although firstly 236 points huge gap down opening and whole day negative zone trading as well as 271 points crash last Friday but whole day consolidation was seen through down moves in Bullish Falling Channels and selling patterns not developed therefore expected that firstly up moves will be seen in next week and its beginning confirmation will be after sustaining above 16484.
Conclusions
(After putting all studies together)
All the trends have turned down after Nifty moving below all the Short to Long Term Averages forcefully. Although MACD is showing more down moves possibilities but Stochastic is suggesting some up moves in Short Term also therefore firstly some up moves may be seen towards above mentioned Intermediate and Long Term Averages in next week.
As intraday trading patterns of last Friday(06-May-2022) are showing consolidation therefore up moves are expected in the beginning of next week but firstly sustaining beyond Long Term Trend decider 200-Day SMA(172450 should be watched for strong rally or deeper correction beginning.
As on going "ABC" correction has turned sideways between 15672-18604 for the last more than 6 months therefore firstly its break out/down should be watched in the coming weeks/months for the life and length of on going correction. Next supports and resistances within this range are as follows:-
Next supports are as follows:-
1- 16352-16398
2- 16253-16304
3- 16098-16152
4- 15966-16019
5- 15672-15846
Next resistances are as follows:-
1- 16694-16736
2- 16866-16945
3- 16991-17074
4- 17181-17230
5- 17264-17315
6- 17524-17561
7- 17616-17663
8- 17727-17779
9- 17795-17832
10- 17959-18129
11- 18292-18321
12- 18379-18458
13- 18548-18604
Although up moves are expected in next week but firstly sustaining beyond Long Term Trend decider 200-Day SMA(17245) and finally break out/down of last more than 6 months sideways correction range(15672-18604) should be watched in the coming weeks/months for next big moves beginning confirmations.