Watch supports amid high possibility
of deeper correction beginning
Technical Analysis,Research & Weekly Outlook
(Sep 26 to Sep 30,2022)
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (23-Sep-2022):-
Technical Patterns and Formations in EOD charts
1- Wave-C completion at 15183.4 on 17-06-2022 and Wave-X beginning.
2- Wave-X continuation with recent top formation at 18096.20 on 15-09-2022.
3- Last 37 Sessions sideways correction between 17167-18096.
4- In Stochastic- %K(5) line has intersected %D(3) line downward,its %K(5) line is falling towards Over sold zone and %D(3) line is flat.
5- Stochastic:- %K(5)- 29.96 & %D(3)- 40.25.
6- In MACD its both lines are kissing in positive zone.
7- MACD(26,12)- 65.43 & EXP(9)- 99.05 & Divergence- -33.62
Conclusions from EOD chart analysis
(Stochastic & MACD)
Although Wave-X continuation and no confirmation of its completion yet but Short Term correction has been deepened and firstly sustaining beyond last 37 Sessions range lowest(17167) should be watched in next week for Wave-X deeper correction beginning confirmations. Positions of Short Term indicators are as follows:-
1- In Stochastic indicator %K(5) line has intersected %D(3) line downward and its %K(5) line is falling towards Over sold zone therefore showing some more down moves possibility in next week.
2- In MACD its both lines are kissing in positive zone and its both the lines are just above Zero line therefore not showing much strength of upward trend. Let MACD show one sided direction then next Short Term Trend will get confirmation accordingly.
Nifty-EOD Chart Analysis
(Averages)
Nifty-EOD Chart (23-Sep-2022):-
Technical Patterns and Formations in EOD charts
Averages:-
A- 5-Day SMA is today at 17622
B- 21-Day SMA is today at 17683
C- 55-Day SMA is today at 17230
D- 100-Day SMA is today at 16702
E- 200-Day SMA is today at 16993
Conclusions from EOD chart analysis
(Averages)
As Nifty has slipped and closed below Short Term Averages(5 & 21-Day SMA) therefore Short Term Trend has turned down and firstly sustaining beyond 55-Day SMA should be watched in next week for Intermediate Term Trend confirmations which is still up and firstly it should be watched in next week/weeks for its confirmation.
Nifty-Last 19 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Aug 29 to Sep 23,2022):-
Technical Patterns formation in last 19 Sessions intraday charts
1- Selling(Resistances) in last 19 Sessions are as follows:-
A- 17397-17489
B- 17666-17713
C- 17798-17838
D- 17852-17919
E- 18044-18091
2- Consolidation(Supports) in last 19 Sessions are as follows:-
A- 17226-17380
3- Last 19 Sessions actual trading between 17167-18096
Conclusions from 19 Sessions
intra day chart analysis
As last 19 Sessions trading between 17167-18096 with above mentioned 5 strong resistances and only 1 support therefore high possibility of deeper corrrection beginning in next week after breakibg down of this last 19 sessions range because higher levels good selling was seen in all the previous 4 sessions of last week.
Nifty-Intra Day Chart Analysis
(23-Sep-2022)
Nifty-Intra Day Chart (23-Sep-2022):-
Technical Patterns formation in today intraday charts
1- Sharp fall after weaker opening
2- Down moves with upward corrections
3- Sideways trading between 17292-17374
4- Whole day actual trading between 17292-17642
Conclusions from
intra day chart analysis
As firstly sharp fall after weaker opening and after that good intraday selling through down moves with upward corrections therefore down moves are expected. Although sideways trading was seen between 17292-17374 in last hour but higher levels too much selling last Friday hence correction continuation is expected below last Friday lowest(17291.65) in the beginning of next week.
Conclusions
(After putting all studies together)
1- Long Term Trend is up.
2- Intermediate Term Trend is up.
3- Short Term Trend is down.
Although Wave-X of "ABC" correction continuation and no confirmation of its completion yet on EOD charts but now correction of Wave-X is on which has deepened also in last week and deeper correction possibility has also emerged because Nifty closed little above last 37 Sessions and 19 sessions lowest(17167) and only one support(17226-17380) is lying between last Friday closing(17327) and 17167 while multiple resistances are above it. As sustaining below 17167 will confirm turning down of Intermediate Term Trend(55-Day SMA at 17230) therefore firstly sustaining it beyond should be watched in next week because Long Term Trend decider 200-Day SMA is just below it at 16993 and it will be at stake.
As Stochastic is showing some more down moves possibility in next week therefore if MACD slips below its Zero line after its MACD line downward intersection then this indicator will confirm Downward trend formations and will suggest deeper correction beginning possibility as well.
As high possibility of deeper correction beginning in next week after slipping below last 37 Sessions lowest(17167) therefore following supports below it should be firstly watched in the coming week/weeks for next Short term moves beginning confirmations:-
1- 17038-17097
2- 16948-17018(Gap support)
3- 16654-16746(Gap support)
4- 16565-16628
5- 16443-16494
6- 16360-16438(Gap support)