NIFTY TOUCHED 5240 IS IT A BULL TRAP?

SENSEX

NIFTY

Hi Friends,

As expected NIFTY almost achieved 5250. But is this a Real Bull Rally or just a Trap for Bulls?

Well as I mentioned in my earlier post any Rally above 5100 seems more like a trap for Bulls. And as I mentioned all the Bears who are in hurry to short will be Fried. :)

The psychological Mark of 5200 is now taken out and year long channel has been broken on upside thereby creating an euphoria. But we have witnessed similar action in April at 5944 where 5900 was psychological mark and in July at 5740 again breakout from channel and psychological barrier of 5700. But we know what happened after such move.

Thought the year long channel has been broken on Nifty; we can clearly see that it is still not broken on the SENSEX. So this move seems more to be a Bull Trap than Real Rally.

Wave Count wise 5 wave advance looks to be complete at today's high or it may get extended to 5285 max. where B leg would be complete. And then the massive wave of short selling in Wave C cold take Nifty to 4250.. For the time being lets keep short term target of 4980.

 RSI is now showing negative divergence but the trend will turned Bearish below this upward rising channel. Expecting a two day tennis match between Bulls and Bears. Simply meaning distributions before the big reversal which could take place on Monday 6th Feb or latest by Tuesday.

This view will get negated above 5350 where I will end Bear Market and accept that Bull is King..

Happy Minting..

Thanks & Regards,

Harsh Dixit.