Nifty had a sharp fall and prices broke below 22000 levels as well. This comes along with strong negative divergence on momentum.
Is it time to sell?
Let us look from Advanced Elliott wave – Neo wave perspective!
Nifty hourly chart: 
As shown on above hourly chart, prices started to move higher from the lows of 18838 and showed strong trend in December and early January 2024.
Post that the volatility has increased and we are seeing rise in the size of Candles as well in either direction. Such sharp volatility is not good for uptrend and indicates anxiety among participants.
From Neo wave perspective – the recent rise looks to be slower and corrective that is trapping both bulls and bears on either direction. This type of trap is usually a result of Triangle pattern.
We are revising our wave counts to accommodate for the recent price action and it suggests that post completion of wave x near the lows of 21137 the rise is in triangle pattern. Within this wave c is probably complete and we are not falling in form of wave d. Prices are exactly at the trendline support and breach below it will open the downside targets for 21520 or lower.
On upside 22060 followed by 22200 is immediate hurdle.
The ongoing pattern is most probably triangle and further price action will confirm the above scenario.
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