Watch level for deeper correction beginning confirmations amid crashing Global markets
Technical Analysis,Research & Weekly
Outlook(May 13 to May 17,2022)
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (10-Jun-2022):-
Technical Patterns and Formations in EOD charts
1- More than 7 months sideways correction between 15671.5-18604.50 with Wave-A to Wave-C formations within this range
2- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling just above Over sold zone.
3- Stochastic:- %K(5)- 20.61 & %D(3)- 21.93.
4- In MACD- MACD line has intersected Average line upward,its MACD line has started to move down in positive zone and its Average line is rising in positive zone.
5- MACD(26,12)- 219.65 & EXP(9)- 121.72 & Divergence- 97.93
Conclusions from EOD chart analysis
(Stochastic & MACD)
As in Stochastic indicator %K(5) line has intersected %D(3) line downward and its both lines are falling just above Over sold zone therefore some more down moves can not be ruled out but if intraday charts starts to show consolidation patterns then some up moves will be seen because during consolidation period Stochastic will also turn Over sold and will begin to suggest fresh up moves/Pull Back rally.
In MACD indicator its MACD line has started to move down in positive zone therefore suugesting that downward trend is on cards but its Average line is rising in positive zone therefore no confirmation. Let MACD line intersect Average line downward then decisive down moves will be seen after downward trend formation confirmations.
Nifty-Last 27 Sessions
intraday charts analysis
Nifty-Intra Day Chart (May 05 to Jun 10,2022):-
Technical Patterns formation in last 27 Sessions intraday charts
1- Selling(Resistances) in last 27 Sessions are as follows:-
A- 16239-16257
B- 16271-16302
C- 16426-16483
D- 16556-16607
E- 16694-16731
F- 16724-16793
G- 16819-16936
2- Consolidation(Supports) in last 27 Sessions are as follows:-
A- 16068-16133
B- 15904-15971
C- 15776-15869
D- 15736-15758
3- Last 27 Sessions actual trading between 15736-16945
Conclusions from 27 Sessions
intra day chart analysis
Last 27 Sessions trading between 15736-16945 with above mentioned multiple supports and resistances.
As resistances are stronger than supports and higher levels good selling was also seen last Friday therefore firstly sustaining beyond above mentioned supports should be watched in next week for the life and length of ongoing previous week started correction.
Nifty-Intra Day Chart Analysis
(10-Jun-2022)
Nifty-Intra Day Chart (10-Jun-2022):-
Technical Patterns formation in today intraday charts
1- Selling between 16271-16302
2- Selling between 16239-16257
3- Last more than 2 hours high volatility between 16234-16324
4- Whole day actual trading between 16173-16324
Conclusions from intra day chart
analysis
As Global markets weakness therefore negative opening of Indian markets last Friday and selling remained continued hence closing was near the lower levels of the day. Although Dow Jones closed 880 points down last Friday and weaker opening of Indian markets can not be ruled out next Monday but firstly sustaining below 16234 should be watched for decisive down moves beginning confirmations because last more than 2 hours high volatility was seen between 16234-16324 last Friday and some times techniical positions reverses also during such high volatility.
Conclusions
(After putting all studies together)
1- Short Term Trend is down.
2- Intermediate Term Trend is sideways between 15672-17414 for the last 38 sessions.
3- Long Term Trend is down.
More than 7 months sideways correction between 15671.5-18604.50 with Wave-A to Wave-C formations within this range. As finally break out/down of this range will form next trend and big moves also therefore it should be watched in the next week/weeks/months and till then Nifty will be understood sideways within this range.
Stochastic 1ndicator is suggesting some more down moves in next week and sustaining below last Friday lowest(16173) as well as downward trend formation confirmations from MACD will mean decisive down moves beginning towards the lowest of last 27 sessions trading range(15736) and last 7 months sideways correctionlowest(15671.5).
As finally slipping below 15671.5 will mean recounting of corrective "ABC" waves structure therefore firstly it should be watched in the coming weeks for deeper correction beginning confirmations amid crashing Global markets.