Relief rally possibility after previous week crash
Technical Analysis,Research & Weekly Outlook
(Jun 20 to Jun 24,2022)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (17-Jun-2022):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-C completion and Impulsive Wave-1 beginning from 7511.10 on 24-03-2020
2- Impulsive Wave-1 completion at 11794.30 on 31-08-2020
3- Corrective Wave-2 completion at 10790.20 on 24-09-2020
4- Impulsive Wave-3 completion at 15431.8 on 16-02-2021
5- Corrective Wave-4 completion at 14151.4 on 22-04-2021
6- Impulsive Wave-5 completion after new life time top formation at 18604.50 on 19-10-2021 and corrective Wave-A of "ABC" correction with Double Zig-Zag pattern formation beginning
7- "ABC" correction continuation with recent bottom formation at 15183.4 on 17-03-2022
8- More than 7 months sideways correction range(15671.5-18604.50) forcefully broken down on 16-10-2021
Conclusions from EOD chart analysis
(Waves structure)
Impulsive Wave-1 of which Waves structure started from 7511.10 on 24-03-2020,that completed after its impulsive Wave-5 completion with new life time top formation at 18604.50 on 19-10-2021. After impulsive Wave-5 completion "ABC" correction with Double Zig-Zag pattern formation begun to correct whole rally between 7511.10-18604.50 which is in continuation with recent bottom formation at 15183.4 on 17-03-2022.
As more than 7 months sideways correction range(15672-18604) forcefully broken down in previous week therefore on going "ABC" correction will remain continied.
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (17-Jun-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 with Double Zig-Zag pattern formation 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- Wave-X completion at 18114.70 on 04-04-2022
6- Wave-A completion at 15735.80 on 12-05-2021
7- Wave-B completion at 16793.80 on 03-06-2022
8- Wave-C continuation with recent bottom formation at 15183.4 on 17-03-2022
9- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines have turned flat in complete Over sold zone
10- Stochastic:- %K(5)- 07.39 & %D(3)- 06.72
11- In MACD- MACD line has intersected Average line downward and its both lines are falling
12- MACD(26,12)- -257.16 & EXP(9)- 86.20 & Divergence- -343.36
Conclusions from EOD chart analysis
(Corrective Waves,Stochastic & MACD)
"ABC" correction with Double Zig-Zag pattern formation begun after impulsive Wave-5 completion at 18604.50 on 19-10-2021 and now its continuation with recent bottom formation at 15183.4 on 17-03-2022.
As in Stochastic indicator its both lines have turned flat in complete Over sold zone therefore suggesting that Short Term up moves are on cards.
As in MACD indicator its both lines are falling after downward intersection therefore showing Short Term downward trend formations and indicating that finally on going correction will remain continued.
Nifty-Intra Day Chart Analysis
(17-Jun-2022)
Nifty-Intra Day Chart (17-Jun-2022):-
Technical Patterns formation in today intraday charts
1- Sharp jump after gap down opening
2- More than 5 hours sideways trading between 15223-15379
3- Whole day actual trading between 15184-15400
Conclusions from intra day chart analysis
Although firstly slipping after gap down opening but after that more than 5 hours sideways trading between 15223-15379. As one-sided patterns were not seen between 15223-15379 last Friday therefore expected that Nifty will firstly trade and prepare for next Short term moves within this range as well as finally sustaining beyond this range will confirm it in next week.
Conclusions
(After putting all studies together)
All the trends are down. As more than 7 months sideways correction range(15671.5-18604.50) forcefully broken down in previous week therefore it has opened the gate of decisive deeper correction beginning which was seen till last Friday of previous week through 0.44% negative closing near the lowest levels of on going correction.
Although MACD indicator is suggesting Short Term downward trend formation and finally correction continuation will be seen but Stochastic indicator has turned completely Oversold because its both lines have turned flat in complete Over sold zone hence Stochastic is showing short Term up moves beginning possibility in next week.
As more than 5 hours sideways trading between 15223-15379 last Friday and one-sided patterns were not seen within this range therefore firstly Nifty will prepare for next Short Term Trend within this range and finally valid break out of this range will generate it hence it should be watched in next week amid relief rally possibility after previous week crash because Stochastic indicator has turned completely oversold also.
