Nifty: An impulse up move...

The following was published in morning before market opened by Waves Strategy Advisors (www.wavesstrategy.com).You can subscribe to daily publication of this report by writing to helpdesk@wavesstrategy.com  

Bottom Line: Nifty continues to move in a range of 50 points similar to past 3 days…

Nifty Daily chart:

  

Nifty 60 mins chart:

Wave Analysis:

We mentioned in previous update, “In short, any decisive move below 5620 will take prices lower till the next support of 5525 levels. However, move above the previous high of 5720 will resolve the uptrend. Our existing clients could now trail their stop near 5620 levels.”

Nifty had a minor gap up opening on last day of September expiry but prices failed to sustain the up move and closed negative during final trading hours. Prices continued to move in the range of 50 points. Prices have not been doing much during expiry days as seen from past few months. It will be important to see how follow-up day spans out after expiry.

As shown on 60 mins chart, prices have moved up impulsively from the low of 5200 to 5720. We can count wave 5 on upside. However the movement after that has been in a narrow channel which has failed to produce any significant correction on downside and so we do not rule out the possibility that minor wave v of 3 is not yet complete and can extend further towards 5820.

Over short term it is advised to wait for a break of 5720 on upside for resumption of uptrend or the break of low at 5620 to open up possibilities for 5550 – 5525.

There is no sign of exhaustion yet from Midcap or Smallcap sectors and Advance decline continues to be in positive.

In short, the broader market continues to be healthy so far and a move above 5720 will confirm that current minor up leg is extending towards 5820. But we remain little cautious since prices now lie near the upper end of the channel as shown on daily chart.