Watch 19691 for Short term Correction
beginning confirmations after
3163.5 points strong rally on Nifty
Technical Analysis,Research & Weekly Outlook
(Jul 24 to Jul 28,2023)
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (21-Jul-2023):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-C of Wave-[(ii)] of Wave-[(iii)] of Wave-1 completion and Impulsive Wave-[(iii)] of Wave-[(iii)] of Wave-1 beginning from 16828.3 on 20-03-2023.
2- Impulsive Wave-[(iii)] of Wave-[(iii)] of Wave-1 continuation with recent top formations at 19991.80 on 20-07-2023.
3- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling within Over bought zone.
4- Stochastic:- %K(5)- 78.73 & %D(3)- 87.75.
5- In MACD- Both lines are kissing in positive zone.
6- MACD(26,12)- 369.56 & EXP(9)- 367.57 & Divergence- 01.99
Conclusions from EOD chart analysis
(Stochastic & MACD)
Impulsive Wave-[(iii)] of Wave-[(iii)] of Wave-1 begun from 16828.3 on 20-03-2023 and is in continuation with recent top formations at 19991.80 on 20-07-2023 after gaining 3163.5 points as well as no confirmation of its completion yet on EOD charts. Positions of Daily indicators are as follows:-
1- As in Short Term indicator Stochastic %K(5) line has intersected %D(3) line downward and its both lines are falling within Over bought zone therefore showing Short Term correction continuation signals in the coming week.
2- As in MACD indicator its both lines are kissing in positive zone therefore at present this indicator is not signalling any side clear trend. Let one sided clear intersection happen then that side next Short Term trend formations will be understood.
Nifty-Last 4 Sessions intraday
charts analysis
Nifty-Intra Day Chart (Jul 18 to Jul 21,2023):-
Technical Patterns formation in last 4 Sessions intraday charts
1- Selling(Resistances) in last 4 Sessions are as follows:-
A- 19831-19842
B- Selling between 19869-19991 through "Up moves in Bearish Rising Channel" after Psychological levels 20,000 euphoria building up
2- Consolidation(Supports) in last 4 Sessions are as follows:-
A- 19705-19728
3- Last 4 Sessions actual trading between 19691-19991
Conclusions from 4 Sessions
intra day chart analysis
Last 4 Sessions trading between 19691-19991 with above mentioned supports and resistances. As higher levels good intraday selling developed in previous week because Psychological levels 20,000 euphoria built up therefore sharp fall was seen last Friday and closing was near the lower levels of last 4 sessions. As higher levels good selling therefore firstly sustaining beyond last 4 sessions lowest should be firstly watched in next week because that will confirm
1- Deeper correction beginning after last 4 sessions range broken down through sustaining below 19691.
2- Very Short term correction completion in sideways market will be understood after sustaining above 19691.
Nifty-Intra Day Chart
Analysis(21-Jul-2023)
Nifty-Intra Day Chart (21-Jul-2023):-
Technical Patterns formation in today intraday charts
1- Volatility in first hour between 19801-19887 after 178 Points weaker opening
2- Down moves with upward corrections
3- Selling between 19793-19821
4- Down moves in Bullish Falling Channel
5- 79 Points sharp up in last half hour
6- Whole day actual trading between 19700-19887
Conclusions from intra day chart analysis
Although volatility in first hour between 19801-19887 after 178 Points weaker opening but after that selling through Down moves with upward corrections and in sideways range selling also between 19793-19821 therefore down moves remained continued till last hour and once Nifty traded 279 points down. As lower levels some consolidation were also seen in last hours through Down moves in Bullish Falling Channel therefore 79 Points sharp up developed in last half hour.
As lower levels some consolidation was also seen below 19793 last Friday therefore expected that nifty will firstly trade between 19700-19793 in the beginning of next week and prepare for next decisive moves beginning as well as finally sustaining beyond this range will confirm it hence it should be firstly in 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 sideways between 19691-19991.
Impulsive Wave-[(iii)] of Wave-[(iii)] of Wave-1 forcefully continuation with recent top formations at 19991.80 on 20-07-2023 and continuous new life time top formations as well as no confirmation of its completion yet on EOD and intraday charts.
As Short Term indicator Stochastic is showing singals of Short Term correction beginning and intraday charts of previous 4 sessions have shown higher levels selling patterns formations also therefore signals of Short term correction beginning have emerged which may be sideways or little deeper also and that will get confirmations through sustaining beyond last 4 sessions lowest(19691).Next supports below last 4 sessions lowest are as follows:-
1- 19599-19670(Strong supports)
2- 19434-19519(Strong supports)
3- 19370-19421
Nifty gained 3163.5 points without deeper corrections during on going rally. As indications of Short term Correction beginning have been seen therefore firstly sustaining beyond last 4 sessions lowest(19691) should be watched in the coming week for its confirmations.