Firstly watch next strong resistance
amid up moves expectations
Technical Analysis,Research & Weekly Outlook
(Jul 31 to Aug 04,2023)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (28-Jul-2023):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-C of Wave-[(ii)] of Wave-[(iii)] of Wave-1 completion at 16828.3 on 20-03-2023 and Impulsive Wave-[(iii)] of Wave-[(iii)] of Wave-1 beginning.
2- Impulsive Wave-[(iii)] of Wave-[(iii)] of Wave-1 continuation with recent top formations at 19991.8 on 20-07-2023.
3- Short Term correction continuation with recent bottom formations at 19563.1 on 28-07-2023.
Conclusions from EOD chart analysis
(Waves structure)
Corrective Wave-C of Wave-[(ii)] of Wave-[(iii)] of Wave-1 completion at 16828.3 on 20-03-2023 and Impulsive Wave-[(iii)] of Wave-[(iii)] of Wave-1 started which is in continuation with recent top formations at 19991.8 on 20-07-2023 after gaining 3163.5 points exactly in 4 months. Now Short Term correction continuation with recent bottom formations at 19563.1 on 28-07-2023 and no confirmation of its completion yet on EOD charts.
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (28-Jul-2023):-
Technical Patterns and Formations in EOD charts
1- Stochastic- %K(5) line has intersected %D(3) line upward and its both lines have started to rise from just above Over sold zone.
2- Stochastic:- %K(5)- 30.10 & %D(3)- 26.13.
3- In MACD- MACD line has intersected Average line downward and its both lines are falling in positive zone.
4- MACD(26,12)- 281.72 & EXP(9)- 345.99 & Divergence- -64.27
Conclusions from EOD chart analysis
(Stochastic & MACD)
Positions of Daily indicators are as follows:-
1- As in Short Term indicator Stochastic %K(5) line has intersected %D(3) line upward and its both lines have started to rise from just above Over sold zone therefore signalling Short Term up moves possibility in next week.
2- As in MACD indicator MACD line has intersected Average line downward and its both lines are falling in positive zone therefore showing Downward trend formation signals.
Although MACD is suggesting Downward trend formation but Stochastic is showing up moves beginning signals therefore fresh down moves after initial up moves can not be ruled out if MACD line does not intersect upward Average line during expected initial up moves.
Nifty-Intra Day Chart Analysis
(28-Jul-2023)
Nifty-Intra Day Chart (28-Jul-2023):-
Technical Patterns formation in today intraday charts
1- Down moves in Bullish Falling Channel after flat opening
2- Up moves with downward corrections in last 2 hours
3- Whole day actual trading between 19563-19695
Conclusions from intra day chart analysis
Although firstly down moves after flat opening last friday but were in Bullish Falling Channel therefore up moves were seen in last 2 hours. As these up moves were with downward corrections therefore whole day intraday consolidation patterns formations will be understood and firstly up moves are expected above last Friday highest(19,695.90) 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 down.
Although impulsive Wave-[(iii)] of Wave-[(iii)] of Wave-1 continuation with recent top formations at 19991.8 on 20-07-2023 and no indication of its completion yet on EOD charts but now its Short Term correction is on with recent bottom formations at 19563.1 on 28-07-2023.
As intraday charts of last Friday are showing good consolidation and Short Term indicator Stochastic is also suggesting Short Term up moves possibility therefore firstly up moves are expected in the beginning next week. If MACD line succeeds to intersect Average line upward during expected up moves then strong rally will be seen towards and above following next resistances after its upward trend formation confirmations.
1- 19642-19707
2- 19724-19749
3- 19793-19825(Strong resistance)
4- 19906-19925
5- 19964-19987
Next supports below last Friday closing are as follows:-
1- 19563-19608
2- 19434-19519(Strong supports)
3- 19370-19421
Although Short term correction continuation and no confirmation of its completion yet on EOD and intraday charts but above mentioned technical analysis led firstly up moves are expected in the beginning of next week therefore firstly sustaining beyond above mentioned strong resistance(19793-19825) should be firstly watched in the coming week for 1st strong signal of fresh rally above life time highest(19991.8) after Short Term correction completion because resistances above 19825 are not strong.
