Nifty has been drifting lower since past 11 days and has finally showed some buying attempt from the zone of 7900 – 7915 which was the lows made on 21st November 2016
Important thing to note is that majority of the Global markets have been moving in a stable environment with a positive bias when Nifty drifted lower. Such independent movement makes the trend susceptible to sudden reversal which we are witnessing today.
Let us try to see the broader Time cycles that has worked very well in the past along with Elliott wave counts:
There are times when predictability is low as it is difficult to decipher the pattern under formation when we are in middle of a correction but when any pattern is near its completion the forecasting ability increases drastically. In above chart we can clearly see how Time cycles have been combined along with Elliott wave counts. Time Cycles continue to be in sell mode atleast till end of January and the pattern is also getting clearer.
We are in final stages of completing the medium term uptrend started in late February 2016 post which the final panic selloff will kick in which will ensure majority are out of the markets just before a big BULL TREND. And all this action is not going to take much time since we have already consumed desired number of months or rather years of correction.
In simple terms we can expect volatile market movements over next few months in up down type of action before the next strong trend starts. But during this up down scenario short term opportunities can be explored with strict stoploss and taking profits off the table as soon as possible. Look at the short term - intraday trading opportunities given in our daily Nifty report:
On morning of 26th December 2016 we mentioned that “Short positions can be created on move below 7940 with day's high as stop and target of 7900." BANG ON! Nifty broke below 7940 and moved below target level 7900 on 26th itself.
On 27th December i.e. today morning we mentioned the following “Long positions can be created only on move above 7960 with 7920 as stop and target of 8000”
Happened: Nifty moved above 7960 and quickly crossed the target of 8000 as well on upside in today’s session.
To know what is the next probable path markets can follow along with detailed analysis and internal Elliott wave counts, detailed Time cycles on Nifty, stocks, Bank Nifty subscribe to “The Financial Waves short term update” and get free access into Monthly research report as a New Year offer that ends in next 5 days along with trading strategy. January 2017 is going to bring in some huge volatility and the time to prepare for this cannot be better! For subscription options visit Pricing Page and select Equity research report. For any queries Contact US