Watch supports amid Short Term correction continuation expectations
Technical Analysis,Research & Weekly Outlook
(Dec 26 to Dec 29,2023)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (22-Dec-2023):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-C of "ABC correction" completion at 15183.4 on 17-06-2022 and Impulsive Wave-1 of new Waves structure beginning.
2- Impulsive Wave-1 completion at 18096.2 on 15-09-2022.
3- Corrective Wave-2 completion at 16747.7 on 30-09-2022.
4- Impulsive Wave-(i) of Wave-3 completion at 18887.6 on 01-12-2022.
5- Corrective Wave-(ii) of Wave-3 completion at 16828.3 on 20-03-2023.
6- Impulsive Wave-(iii) of Wave-3 completion at 20222.45 on 15-09-2023 and Wave-A of "ABC" correction beginning.
7- Wave-A of Wave-(iv) of Wave-3 completion at 19333.6 on 04-10-2023.
8- Wave-B of Wave-(iv) of Wave-3 completion at 19849.8 on 17-10-2023.
9- Corrective Wave-C of Wave-(iv) of Wave-3 completion at 18837.80 on 26-10-2023 and impulsive Wave-(v) of Wave-3 beginning.
10- Impulsive Wave-(v) of Wave-3 continuation with its recent high and new life time top formations at 21593.00 on 22-12-2023.
11- Short Term correction continuation with its recent bottom formations at 210976.80 on 21-12-2023
Conclusions from EOD chart analysis
(Waves structure)
Impulsive Wave-1 of new Waves structure started from 15183.4 on 17-06-2022 after corrective Wave-C of "ABC correction" of previous Waves structure completion at this level. Its corrective Wave-2 completed at 16747.7 on 30-09-2022 and Impulsive Wave-3 begun of which Wave-(v) is in continuation.
Impulsive Wave-3 was divided into 5 sub-waves in which "ABC" correction of Wave-(iv) of Wave-3 was also seen. Impulsive Wave-(v) of Wave-3 is in continuation with its recent high and new life time top formations at 21593.00 on 22-12-2023 and no confirmation of its completion yet on EOD and intraday charts.Now Short Term correction is in continuation with its recent bottom formations at 210976.80 on 21-12-2023
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (22-Dec-2023):-
Technical Patterns and Formations in EOD charts
1- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling from Over bought zone.
2- Stochastic:- %K(5)- 40.07 & %D(3)- 52.25.
3- In MACD- MACD line has intersected Average line downward and its both lines are falling in positive zone.
4- MACD(26,12)- 578.20 & EXP(9)- 662.10 & Divergence- -83.90
Conclusions from EOD chart analysis
(Stochastic & MACD)
Position of Short Term indicators are as follows:-
1- As in Stochastic indicator %K(5) line has intersected %D(3) line downward and its both lines are falling from Over bought zone therefore first strong signal of Short Term correction beginning has been developed.
2- As in MACD indicator MACD line has intersected Average line downward and its both lines are falling in positive zone. therefore signalling short Term downward trend formations possibility.
Nifty-Last 7 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Dec 14 to Dec 22,2023):-
Technical Patterns formation in last 7 Sessions intraday charts
1- Selling(Resistances) in last 7 Sessions are as follows:-
A- 21481-21593
B- 21461-21501
C- 21419-21451
D- 21225-21296
2- Consolidation(Supports) in last 7 Sessions are as follows:-
A- 21338-21405
B- 21282-21363
C- 20770-20852
D- 21052-21161
3- Last 7 Sessions actual trading between 20977-21593
Conclusions from 7 Sessions
intra day chart analysis
Previous 7 sessions trading between 20977-21593 with above mentioned supports and resistances in which it seems that resistances are stronger than supports despite both supports and resistances are equally 4. As above mentioned first 2 supports(21338-21405,21282-21363) has been nullified because below these 2 supports fresh selling(Resistances) was seen on 21-12-2022 between 21225-21296.
As resistances are stronger therefore fresh selling in next week will mean decisive down moves below last 7 sessions lowest(20977) which can not be ruled out.
Nifty-Intra Day Chart Analysis
(22-Dec-2023)
Nifty-Intra Day Chart (22-Dec-2023):-
Technical Patterns formation in today intraday charts
1- Consolidation between 21250-21279
2- Sharp up
3- Selling between 21331-21390
4- Sharp down
5- Selling between 21340-21371
6- Whole day actual trading between 21233-21390
Conclusions from intra day chart analysis
Although firstly consolidation after positive opening and sharp up moves were also seen after that but higher levels good selling developed hence Nifty moved down sharply and new intraday lowest was formed.
As again follow up selling in last hour after some up moves therefore minor lower levels consolidation and higher levels good intraday selling will be understood last Friday and resultant down moves below last Friday lowest(21232.45) will be seen in the beginning of 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 at stake which will be finally decided by last 7 sessions trading range valid break out.
Impulsive Wave-(v) of Wave-3 and no confirmation of its completion yet on EOD and intraday charts but Short Term correction started on 20-12-023 which is in continuation with its recent bottom formations at 210976.80 on 21-12-2023 and no confirmation of its also completion yet.
As Stochastic indicator is signalling Short Term correction beginning possibility and MACD indicator is also indicating short Term downward trend formations possibility therefore more down moves can not be ruled out in the coming week bacause higher levels good intraday selling has been seen in last 7 sessions as well as good intraday selling was seen last Friday.
Supports of last 7 sessions(20977-21593) have been updated above and Next supports below 20977 are as follows:-
1- 20950-20976
2- 20770-20852(Strong supports)
As on going Short Term correction continuation is expected therefore above mentioned supports should be firstly watched in the coming week for the life and length of on going correction.