Friday continues to be bad for the markets since past few months now!

 Nifty Daily chart:

Nifty 20 mins:

As shown on above charts, Nifty failed to sustain the rally and sold off steeply on Friday. We have been observing that Fridays have been bearish for the markets for many weeks now. The opening on Friday was flat but the selloff started in later part of the day and Nifty closed almost 1.9% down.

Trend over next 1 or 2 days looks to be down given the selloff across the sector but we would maintain our stand as this leg is wave ii of c and not fresh down trend. As long as 4994 is not taken out on downside we will keep current bullish count intact. A move below 4994 will indicate alternative scenario as wave c over at the top 5170.

We can observe that volatility has increased in Indian markets and the trends are smaller in either direction. This changes the market dynamics from rather than riding the trend for big profits but to keep booking the profits at every rise or vice-versa for the down trend. Indian markets have been very challenging and relative to global markets the movements in Indian markets make sense if we see it as leading other global markets.

In short, the downtrend might continue till 4994. We will watch how prices react from there and a decisive break below 4950 will indicate the uptrend from 4700 is complete at 5170 and next leg down has started. The up leg from 4700 – 5170 will then be marked as a complete X wave.

As long as prices take support at 4994 we maintain our stand as this is wave ii of c. A move back above 5100 will confirm resumption of uptrend till then watch for 4994 levels followed by 4950 on downside.