Bottom
Line:
Nifty continues to move in lackluster fashion and trade in a range of 5090 and
5170.
Nifty Daily chart:
Nifty 60 mins chart:
Wave Analysis:
Nifty continues to move in lackluster fashion as expected.
Prices had a gap up opening and moved towards the 5160 levels. However there
was no follow-up rally during second half of the session and moved in a narrow
range between 5130 – 5160.
Indian markets have been testing the patience of traders and
making it a tiring and boring trading environment. It is important to be
objective during such scenarios as boredom produces an emotional flux resulting
into over leverage. There are times when it is better to wait for clear
direction to emerge before betting on either side.
Today being an expiry day there can some volatility seen. Last
few expiries have seen a narrow move on the day, so we will not be surprised if
market continues to move between 5090 and 5170 levels.
As seen on daily chart, we can see a Doji formation (open and
close) at same levels. It is important to see follow-up action after Doji
formation. A move below yesterday’s low of 5129 will give bearish implication
and a move above 5160 will give short term positivity.
Time-wise correction is still pending and market can move like
this for next 4 to 5 days before the next leg up starts.
In short, a break below yesterday’s low of 5129 can take prices
towards 5095 levels. Any move below 5090 will open up possibilities for 5040.
For medium term positivity it is important for prices to close above 5195 –
5200 levels.
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u sadi timewise 4-5 days ar eleft for correction ......can u describe whta is the counts that u r using ...for correction and for trends
ReplyDeleteHi Janak, Currently we are in wave b of second correction after x as shown. This wave might get completed in a day or 2. After that we will have wave c down which can take 2 to 3 days. So approximately we might take 4 days to complete this wave ii. However time can sometime be very dynamic and so if prices move above 5200 decisively that will be first indication of next leg up...
ReplyDeleteHi ashish
DeleteNice to read your analysis. Many stocks are showing signs of fatigue and the up move on them is starting to look a bit dicey. Plus almost everyone believes there will be a break out which again makes me circumspect.
Dont u see a possibility of a neutral triangle which has five legs. We could see a dip to 4950 odd which will take out the bullish sentiment. That dip will become c leg of the triangle. Then a sharp d leg up and and an e leg consolidation. This would mean the bias will still be up but will catch many by surprise.
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