Bullish rally continuation towards next Psychological level at 25,000 amid Very Short Term or little deeper intraday correction possibility
Technical Analysis,Research & Weekly
Outlook(Jul 29 to Aug 02,2024)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (26-Jul-2024):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-C of previous Waves structure "ABC correction" completion at 15183.40 on 17-06-2022 and Impulsive Wave-1 of new Waves structure beginning.
2- Impulsive Wave-1 completion at 18887.60 on 01-12-2022.
3- Corrective Wave-2 completion at 16828.30 on 20-03-2023.
4- Impulsive Wave-(i) of Wave-3 completion at 20222.45 on 15-09-2023 and Wave-A of "ABC" correction beginning.
5- Wave-A of Wave-(ii) of Wave-3 completion at 19333.60 on 04-10-2023.
6- Wave-B of Wave-(ii) of Wave-3 completion at 19849.80 on 17-10-2023.
7- Corrective Wave-C of Wave-(ii) of Wave-3 completion at 18837.80 on 26-10-2023 and impulsive Wave-(iii) of Wave-3 beginning.
8- Impulsive Wave-(iii) of Wave-3 continuation with its recent high and new life time top formations at 24861.15 on 26-07-2024.
Conclusions from EOD chart analysis
(Waves structure)
Corrective Wave-C of "ABC correction" of previous Waves structure completed at 15183.40 on 17-06-2022 and from his level Impulsive Wave-1 of new Waves structure begun which completed at 18887.60 on 01-12-2022 and Wave-2 begun from this level. Corrective Wave-2 completed at 16828.30 on 20-03-2023 and Impulsive Wave-3 started from this level.
Impulsive Wave-(i) of Wave-3 completed at 20222.45 and from this level corrective Wave-A of "ABC" correction of Wave-(ii) of Wave-3 started which completed at 19333.60 on 04-10-2023 and Wave-B begun. Wave-B completed at 19849.80 on 17-10-2023 and Wave-C started from this levels which completed at 18837.80 on 26-10-2023 and impulsive Wave-(iii) of Wave-3 begun from this level.
Now Impulsive Wave-(iii) of Wave-3 is in continuation with its recent high and new life time top formations at 24861.15 last friday ie on 26-07-2024 and no indication of its completion yet on EOD charts.
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (26-Jul-2024):-
Technical Patterns and Formations in EOD charts
1- Stochastic- %K(5) line has intersected %D(3) line upward and its both lines are rising towards Over bought zone.
2- Stochastic:- %K(5)- 60.88 & %D(3)- 49.52.
3- In MACD- MACD line has intersected Average line downward and its both lines are falling in positive zone.
4- MACD(26,12)- 265.25 & EXP(9)- 359.66 & Divergence- -94.41
Conclusions from EOD chart analysis
(Stochastic & MACD)
Technical positions of Short Term indicators are as follows:-
1- As in Stochastic its %K(5) line has intersected %D(3) line upward and its both lines are rising towards Over bought zone therefore it will be understood that signals of on going rally continuation towards its Over bought zone have been generated.
2- As in MACD indicator its MACD line has intersected Average line downward and its both lines are falling in positive zone therefore it will be understood that this indicator is showing signals of Short Term downward trend formations.
Nifty-Last 6 Sessions intraday
charts analysis
Nifty-Intra Day Chart (Jul 19 to Jul 26,2024):-
Technical Patterns formation in last 6 Sessions intraday charts
1- Pre and Post Budget 786 points high volatility in last 6 sessions
2- Whole day intraday selling on 19-07-2024
3- Selling between 24490-24578 on 22-07-2024
4- Union Budget announcements led 507 points high intraday volatility between 24075-24582 on 23-07-2024
5- Higher levels selling and lower levels consolidation on 24-07-2024
6- Whole day up moves with intraday consolidation patterns formations on 25-07-2024
7- Whole day up moves with intraday consolidation patterns formations on 26-07-2024
8- Last 6 Sessions actual trading between 24075-24861
Conclusions from 6 Sessions intra day
chart analysis
As strong 650 points rally with intraday consolidation patterns formation in last 2 sessions therefore all the resistances of previous sessions have been nullifiled and following 2 supports ranges will be understood next strong supports of Nifty:-
1- 24367-24426
2- 24308-24367
As Nifty closed at life time highest after new all time top formations last Friday with previous 2 sessions only intraday consolidation patterns formations and intraday selling patterns were not seen in last 2 sessions also therefore firstly upward moves are expected. Let fresh selling patterns develop only then any type of correction will be considered.
Nifty-Intra Day Chart Analysis
(26-Jul-2024)
Nifty-Intra Day Chart (26-Jul-2024):-
Technical Patterns formation in today intraday charts
1- Whole day up moves with downward corrections
2- Whole day actual trading between 24411-24861
Conclusions from intra day
chart analysis
As good intraday consolidation on 25-Jul-2024 therefore up moves begun after positive opening last Friday which remained continued whole day and Nifty closed at life time highest after new all time top formations. Whole day up moves were with downward corrections which is a consolidation pattern also and intraday selling patterns were not seen last Friday therefore more up moves expected 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 UP.
Although Pre Budget 2 sessions correction and after that Union Budget announcements led 507 points high intraday volatility also on Budget day but 650 strong rally was also seen in last 2 sessions and Nifty closed at life time highest with new all time top formations last Friday. It means that now Impulsive Wave-(iii) of Wave-3 is in continuation strongly and no indication of its completion yet on EOD charts.
As only intraday consolidation patterns formations in last 2 sessions and intraday selling patterns were not seen also in last 2 sessions as well as there is no resistance above life time highest closing of last Friday therefore it will be understood that there is no indication of even Very Short Correction hence firstly up moves will be expected in the beginning of next week. Let complete fresh selling patterns develop on intraday and EOD charts then any type of bigger correction will be considered except only intraday corrections.
Although MACD indicator is showing Downward Trend formations but it should be kept in mind that sometimes MACD gives next Trend formation signals little later also. As Stochastic indicator is showing upward moves signals therefore on going Bullish rally continuation will be seen towards next Psychological level at 25,000 in next week. As sentiment has turned heated after last 2 sessions 650 strong rally therefore Very Short Term or little deeper intraday correction possibility also can not be ruled out.