Finally rally with Pre Election results confusions led Volatility & after Short Term correction completion
Technical Analysis,Research & Weekly Outlook
(May 27 to May 31,2024)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (24-May-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 23026.40 on 24-05-2024.
Conclusions from EOD chart analysis
(Waves structure)
Impulsive Wave-1 of new Waves structure started from 15183.40 on 17-06-2022 after Corrective Wave-C of "ABC correction" of previous Waves structure completion at this level. Corrective Wave-2 begun from this level which completed at 16828.30 on 20-03-2023. Impulsive Wave-3 started from this level.
Wave-A of "ABC" correction begun from 20222.45 after Impulsive Wave-(i) of Wave-3 completion at this level. Finally Wave-C of "ABC" correction completed at 18837.80 which means that Corrective Wave-(ii) of Wave-3 completion. Impulsive Wave-(iii) of Wave-3 started from this level which is in continuation with its recent high and new life time top formations at 23026.40 on 24-05-2024 and no indication of its completion yet on EOD charts.
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (24-May-2024):-
Technical Patterns and Formations in EOD charts
1- More than 4 months old Rising Channel Pattern formations and Nifty closed near its higher Rising Channel line in previous week.
2- Stochastic- Its both lines %K(5) and %D(3) are kissing in Over bought zone.
3- Stochastic:- %K(5)- 93.11 & %D(3)- 93.03.
4- In MACD- MACD line has intersected Average line upward and its both lines are rising in positive and negative zone.
5- MACD(26,12)- 101.50 & EXP(9)- -55.18 & Divergence- 156.68
Conclusions from EOD chart analysis
(Stochastic & MACD)
More than 4 months old Rising Channel Pattern formations and Nifty closed near its higher Rising Channel line in previous week therefore firstly valid break out of its higher rising line should be watched in the coming week for next bigger moves beginning confirmations because coming week is Pre Election results week and may be highly volatile also.Technical positions of Short Term indicators are as follows;-
1- As in Stochastic its both lines %K(5) and %D(3) are kissing in Over bought zone therefore it will be understood that at present this indicator is not showing any side bigger moves beginning confirmations. Its both lines are Kissing mode for the last more than one week and slipping below Over bought zone after downward intersection will mean Short Term correction beginning confirmations therefore it should be watched for its confirmations.
2- As in MACD indicator MACD line has intersected Average line upward and its both lines are rising in positive and negative zone therefore it will be understood that this indicator has started to show signals of Upward Trend formations. Let its both lines to start upward moves in Positive Zone then strong rally will be seen after its Upward Trend formation confirmations.
Nifty-Intra Day Chart Analysis
(24-May-2024)
Nifty-Intra Day Chart (24-May-2024):-
Technical Patterns formation in today intraday charts
1- Whole day trading with Mixed Patterns formation between 22918-23026
2- Whole day actual trading between 22908-23026
Conclusions from intra day chart analysis
Although more than 100 points recovery was seen from lower levels after little weaker opening and new life time top formations also but lower levels some consolidation and higher levels some selling was also seen last Friday. As whole day trading was with Mixed Patterns formation between 22918-23026 therefore expected that Nifty will firstly trade and prepare for next Short Term Trend within and near about this trading range in the beginning of next week. Finally sustaining beyond 22918-23026 will confirm next Short Term Trend therefore should be watched for its confirmations in the 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.
Impulsive Wave-(iii) of Wave-3 continuation with its recent high and new life time top formations at 23026.40 in previous session and no indication of its completion yet on EOD charts.
Nifty is trading for the last more than 4 months within Rising Channel pattern and Nifty closed near its higher Rising line in previous week. Previous life time top was formed at 22794.70 on 03-05-2024 and after 13 sessions this life time top was forcelly broken out on 23-05-2024 with that day new life time top formations at 22993.60 and 369 Points(1.64%) points intraday gains. As such strong break out happened after completion of 5th phase of pooling therefore it will be understood that Indian marekts operaors have found confirm cues of BJP big victory in Parliament Elections 2024.
As Short Term indicator Stochastic is showing signals of Short Term correction which may also be seen but until Nifty will not sustain below the lower rising line of Rising Channel pattern till then decisive down moves will not be seen. As MACD indicator has started to indicate upward trend formations therefore expected that finaaly up moves will be seen after Short Term correction completion. First strong signal of any side Short term moves beginning will come after sustaining beyond 22918-23026 in which Nifty traded almost whole day with Mixed Patterns formation last Friday.
As next week is Pre Election results week and its results confusion led valatility may also be seen therefore firstly sustaining beyond following supports should be watched one by one for next decisive moves beginning confirmations amid finally rally beginning expectations after expected Short Term correction completion near about any of the following supports range:-
1- 22887-22931
2- 22816-22844
3- 22657-22703
4- 22527-22883
5- 22444-22485
6- 22357-22403
7- 22055-22106
