Firstly down moves & finally last 56 sessions range will confirm next Short to Long Term Trend
Technical Analysis,Research & Weekly Outlook
(Oct 24 to Oct 28,2022)
Nifty-EOD Chart Analysis
(Corrective Waves & Averages)
Nifty-EOD Chart (21-Oct-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 with Double Zig-Zag pattern formation.
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 completion at 15183.4 on 17-06-2022.
9- Wave-X continuation with recent top formation at 18096.20 on 15-09-2022.
10- Averages:-
A- 5-Day SMA is today at 17491
B- 21-Day SMA is today at 17218
C- 55-Day SMA is today at 17492
D- 100-Day SMA is today at 16888
E- 200-Day SMA is today at 16995
Conclusions from EOD chart analysis
(Corrective Waves & Averages)
Corrective Wave-A of "ABC" correction beginning with Double Zig-Zag pattern formation after impulsive Wave-5 completion and new life time top formation at 18604.50 on 19-10-2021. Now Wave-X of Double Zig-Zag correction continuation with recent top formation at 18096.20 on 15-09-2022 and no confirmation of its completion yet on EOD and intraday charts.
Nifty has closed above all the Short to Long Term Averages last Friday which is a strong indication of Indian markets strength,let Nifty to sustain above all these Averages then strong rally will be seen in the coming weeks/months..
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (21-Oct-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 56 Sessions sideways correction between 16748-18096.
4- Stochastic- %K(5) line and %D(3) line both lines are kissing in Over bought zone.
5- Stochastic:- %K(5)- 86.78 & %D(3)- 88.77.
6- In MACD- MACD line has intersected Average line upward. Its MACD line is rising in positive zone while its Average line is rising in negative zone.
7- MACD(26,12)- 26.65 & EXP(9)- -152.73 & Divergence- 179.38
Conclusions from EOD chart analysis
(Stochastic & MACD)
Wave-X started and in continuation after Wave-C completion at 15183.4 on 17-06-2022 as well as no confirmation of its completion yet after recent top formation at 18096.20 on 15-09-2022. As last 56 Sessions like big sideways correction between 16748-18096 and finally sustaining beyond this range will confirm the life and length of on going Wave-X with one sided next big moves. Positions of Short Term indicators are as follows:-
1 In Stochastic indicator its both %K(5) and %D(3) lines are kissing in Over bought zone and suggesting that Short Term correcion is on cards which will be seen in next week,
2- In MACD its both lines rising but MACD line is rising in positive zone while its Average line is rising in negative zone which is sugesting some more up moves possibilities.
Nifty-Intra Day Chart Analysis
(21-Oct-2022)
Nifty-Intra Day Chart (21-Oct-2022):-
Technical Patterns formation in today intraday charts
1- Selling between 17627-17670(immediate Resistances)
2- Down moves in Bullish Falling Channel
3- Support between 17521-17563
4- Whole day actual trading between 17521-17670
Conclusions from intra day chart analysis
Although firstly up moves after gap up strong opening but selling developed which remain continued more than 4 hours therefore down moves were seen in Mid-session. As these Down moves were in Bullish Falling Channel and lower levels supports also therefore firstly up moves are expected towards immediate resistances between 17627-17670 and finally sustaining it beyond will confirm next intraday decisive moves in the beginning of next week.
Conclusions
(After putting all studies together)
All the trends are up and now Wave-X continuation after Short Term correction completion as well as no confirmation of its compleiton yet on EOD and intraday charts.
As last 56 Sessions like big Wave-X sideways correction between 16748-18096 therefore finally sustaining beyond this range will confirm next big moves. Once sustaining below 16748 will mean deeper correction beginning towards/below the the lowest(15183.4) of on going correction and sustaining above 18096 will mean rally towards and above life time highest(18604.50)
Although Short indicator MACD is showing upward trend while Stochastic is suggesting that Short Term correction which may be seen in next week and fresh rally will be seen after its completion if Nifty does not sustain below last 56 sessions lowest(16748).As finally last 56 sessions range(16748-18096) will confirm next Short to Long Term Trend therefore its break out/down should be watched in the coming week/weeks for its confirmations.
