Firstly up moves but emergence of Short Term correction possibility also
Technical Analysis,Research & Weekly Outlook
(Oct 31 to Nov 04,2022)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (28-Oct-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 beginning with Double Zig-Zag pattern formation.
7- Wave-A completion at 16410.20 on 20-12-2021.
8- Wave-B completion at 18351.00 on 18-01-2022.
9- Wave-C bottom formation at 15671.5 on 08-03-2022.
10- Wave-X completion at 18114.70 on 04-04-2022.
11- Wave-A completion at 15735.80 on 12-05-2021.
12- Wave-B completion at 16793.80 on 03-06-2022.
13- Wave-C completion at 15183.4 on 17-06-2022.
14- Wave-X continuation with recent top formation at 18096.20 on 15-09-2022.
15- More than 1 year "ABC" correction continuation with Double Zig-Zag pattern formation
Conclusions from EOD chart analysis
(Waves structure)
Waves structure which begun from 7511.10 on 24-03-2020 through its Impulsive Wave-1 was completed through its impulsive Wave-5 at 18604.50 on 19-10-2021 after gaining 11093.4 points in almost 21 months and "ABC" correction begins which is in continuation for the last more than 1 year. On going "ABC" correction is with Double Zig-Zag pattern formation which lost 3421.1 points after its bottom formation at 15183.4 on 17-06-2022. It means that Nifty has corrected 30.84% in more than 12 months and showing signals of Price wise and Time wise correction completion of that Bullish rally which gained 11093.4 points in almost 21 months.
Now Wave-X continuation with recent top formation at 18096.20 on 15-09-2022 and it has gained 2912.8 points during its more than 4 months Bullish journey as well as finally it will decide the life and length of on going "ABC" correction(with Zig-Zag pattern formation) therefore should be watched in the coming weeks/months for its confirmations.
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (28-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 60 Sessions sideways correction between 16748-18096.
4- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling from Over bought zone.
5- Stochastic:- %K(5)- 74.93 & %D(3)- 75.95.
6- Stochastic is showing negative divergence
7- In MACD- MACD line has intersected Average line upward and its both lines are rising in positive zone.
8- MACD(26,12)- 310.77 & EXP(9)- 64.22 & Divergence- 246.55
Conclusions from EOD chart analysis
(Stochastic & MACD)
As Wave-X is correcting into sideways mode between 16748-18096 for the last 60 Sessions which is too much long period and finally sustaining beyond or forceful break out/down of this trading range will decide also next one sided big moves therefore firstly it should be watched in the coming weeks/months for its confirmations. Positions of Short Term indicators are as follows:-
1 In Stochastic indicator %K(5) line has intersected %D(3) line downward and its both lines are falling from Over bought zone as well as it is showing negative divergence therefore showing strong sinals of Short Term correction beginning which may start any day in the coming 1/2 weeks,
2- In MACD its MACD line has intersected Average line upward and its both lines are rising in positive zone therefore showing upward trend and suggesting some more up moves possibilities.
Although both the above Short Term indicators are showing adverse signals but Stochastic is showing stronger indications therefore expected that firstly Short Term correction will be seen and after that up moves will restart after Short Term correction completion.
Nifty-Intra Day Chart Analysis
(28-Oct-2022)
Nifty-Intra Day Chart (28-Oct-2022):-
Technical Patterns formation in today intraday charts
1- Volatility in first 2 hours between 17777-17838
2- Down moves with upward corrections
3- Up moves with downward corrections
4- Whole day actual trading between 17724-17838
Conclusions from intra day chart analysis
Although firstly Nifty traded more than 100 points up after positive opening but volatility in first 2 hours and after that selling was seen through down moves with upward corrections and Nifty traded in negative zone also. As some up moves with downward corrections in last 2 hours after getting lower levels supports therefore some consolidation will also be understood and firstly up moves are expected towards following next resistances in the beginning of next week:-
1- 17798-17838
2- 17852-17919
3- 18044-18091
Conclusions (After putting
all studies together)
As Nifty has closed above all the Short to Long Term Averages for the last 8 sessions therefore all the Trends are up.
On going Wave-X has shown too much strength after gaining 2912.8 points in the last more than 4 months rally which remained only 508.3 points short of life time highest(18604.50) after forming it recent top at 18096.20 therefore indications of its new life time top formations have emerged. As Wave-X is moving sideways between 16748-18096 for the last 60 Sessions like big period and Russia-Ukraine war may turn into Atomic World-war also therefore firstly sustaining beyond this range should be watched for the confirmation of:-
1- Above 18096 will confirm fresh strong rally beginning with high possibility of bullish moves after new life time top formations.
2- Below 16748 will mean deeper correction beginning towards and below the bottom(15183.4) of on going "ABC" correction.
Next resistance between 16748-18096 have been posted above and next supports within this range are as follows which may have to be watched in the coming week/weeks because as per Short Term indicator Stochastic Short Term correction is on cards:-
1- 17655-17712
2- 17477-17591
3- 17381-17401(Gap support)
4- 17226-17374
5- 17106-17219
6- 16941-17029
7- 16760-16855
