Levels will confirm next trend
amid Geo-Political tension led
high volatility
Technical Analysis,Research &
Weekly Outlook(May 23 to May 27,2022)
Nifty-EOD Chart Analysis
(Corrective Waves)
Nifty-EOD Chart (20-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- 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- Pull Back Rally correction continuation with recent bottom formation at 15735.8 on 12-05-2022
Conclusions from EOD chart analysis
(Corrective Waves)
Corrective Wave-A of "ABC" correction started after impulsive Wave-5 completion at 18604.50 on 19-10-2021 and now correction is still continued with its Wave-C bottom formation at 15671.5 on 08-03-2022. Strong Pull Back Rally developed after Wave-C bottom formation which completed at 18114.70 on 04-04-2022 and its correction begun which is in continuation with its recent bottom formations at 15735.8 on 12-05-2022. Now "ABC" correction is very much on and no indication of its completion yet on EOD charts
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (20-May-2022):-
Technical Patterns and Formations in EOD charts
1- 7 months sideways correction between 15671.50-18604.50.
2- Stochastic- %K(5) line has intersected %D(3) line upward and its both lines are kissing in the middle zone.
3- Stochastic:- %K(5)- 55.43 & %D(3)- 58.26.
4- In MACD- MACD line has intersected Average line downward and its both lines are kissing in negative zone.
5- MACD(26,12)- -576.26 & EXP(9)- -571.97 & Divergence- -4.29
Conclusions from EOD chart analysis
(Stochastic & MACD)
As 7 months correction turned sideways between 15671.50-18604.50 and at present both the lines are kissing in both Short Term indicators(Stochastic and MACD) therefore suggesting that Indian markets are not trending and will prepare for next trend in the coming week/weeks.
Nifty-Last 10 Sessions
intraday charts analysis
Nifty-Intra Day Chart (May 09 to May 20,2022):-
Technical Patterns formation in last 10 Sessions intraday charts
1- Selling(Resistances) in last 10 Sessions are as follows:-
A- 16256-16304
B- 16311-16404
2- Consolidation(Supports) in last 10 Sessions are as follows:-
A- 16185-16224
B- 16117-16163
C- 15776-15869
D- 15736-15758
3- Last 10 Sessions actual trading between 15736-16404
Conclusions from 10 Sessions
intra day chart analysis
Last 10 Sessions sideways trading between 15736-16404 with above mentioned supports and resistances. As both lower levels supports and higher levels resistances are almost equal stronger therefore firstly Nifty will have to trade and prepare for next decisive moves beyond this range which will be done in next week.
Let Nifty to trade and prepare and then finally valid break out/down of this last 10 sessions trading range will confirm those next big moves which should be firstly watched in the coming week/weeks.
Conclusions
(After putting all studies together)
1- Short Term Trend is sideways between 15736-16404.
2- Intermediate Term Trend is down.
3- Long Term Trend is down.
As "ABC" correction begun after impulsive Wave-5 completion at 18604.50 on 19-10-2021 therefore it has to correct that whole Waves structure of which impulsive Wave-1 started from 7511.10 on 24-03-2020. Now its "ABC" correction continuation in sideways mode between 15671.50-18604.50 for the last 7 months and no indication of its completion yet on EOD charts.
Short Term Trend is sideways between 15736-16404 for the last 10 sessions and Short Term indicators(Stochastic and MACD) are also not showing any trend therefore firstly sustaining beyond this last 10 sessions trading range should be watched for first signal of next trend beginning.
As high Geo-Political tension due to Russian-Ukraine war and mounting China-Taiwan war possibility also therefore all the Global markets including Indian markets remained highly volatile in previous week. It is an established fact that technical positions reverses also amid such high volatility therefore firstly valid break out/down of following levels should be watched one by one in the coming week/weeks for next Short to Long Trend formation confirmations:-
1- 15736-16404(For first signal)
2- 15672-18604(For confirmations)
