Hi Friends,
In last post I mentioned about 4th Wave Decline on Nifty to 5525. However, after assessing current structure it looks like the Correction in Wave 4 might have already been over at 5583.
Nifty has been Rallying in a Channel since June 2012 low of 4770 & Trend will Remain Up until this channel holds. On a daily chart we can see a clear 3 Wave decline. Nifty took support at 38.2% Retracement of the September Rally. Hence Wave 4 as discussed might have been over. and Nifty might have started its journey towards 5950-6040 in Wave 5.
On Intra-day chart we can see the Triangle in Wave B which is which is quite common for B Wave. However, it's still not clear whether C is over; as there is no clear evidence for 5 Wave decline n C of Wave 4. Also Rally from 5583 is not clearly identified as Impulse. And it does look like Wave 4 Corrective. So still there is slight chance of Nifty sliding lower in final 5th Wave to complete 20 Days Cycle. Since Wave 3 consumed 20 Days Wave 4 Corrective shall also consume 20 Days. So this decline may fall short and does not go below 5585.
So further Dip if any shall be bought with stop below 5515 to ride the Rocket Rally to 5950-6040. Since this is the 5th wave its Better to keep a Trailing Stop until Nifty reaches 5950-6040 to Enjoy the Rally..
The above view shall hold true until Nifty takes support of Rising Channel. However, if Channel break all Hell will Break Free till 5060. Also since Nifty has already achieved Wave equality in Larger Degree 'C' at 5815 there is possibility of 5th Failure. So we need to be cautiously & not aggressively Bullish here.
Thanks & Regards,
Harsh Dixit.
 |
| NIFTY - Weekly |
In last post I mentioned about 4th Wave Decline on Nifty to 5525. However, after assessing current structure it looks like the Correction in Wave 4 might have already been over at 5583.
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| NIFTY - Daily |
Nifty has been Rallying in a Channel since June 2012 low of 4770 & Trend will Remain Up until this channel holds. On a daily chart we can see a clear 3 Wave decline. Nifty took support at 38.2% Retracement of the September Rally. Hence Wave 4 as discussed might have been over. and Nifty might have started its journey towards 5950-6040 in Wave 5.
.png) |
| NIFTY - Intra Day |
On Intra-day chart we can see the Triangle in Wave B which is which is quite common for B Wave. However, it's still not clear whether C is over; as there is no clear evidence for 5 Wave decline n C of Wave 4. Also Rally from 5583 is not clearly identified as Impulse. And it does look like Wave 4 Corrective. So still there is slight chance of Nifty sliding lower in final 5th Wave to complete 20 Days Cycle. Since Wave 3 consumed 20 Days Wave 4 Corrective shall also consume 20 Days. So this decline may fall short and does not go below 5585.
So further Dip if any shall be bought with stop below 5515 to ride the Rocket Rally to 5950-6040. Since this is the 5th wave its Better to keep a Trailing Stop until Nifty reaches 5950-6040 to Enjoy the Rally..
The above view shall hold true until Nifty takes support of Rising Channel. However, if Channel break all Hell will Break Free till 5060. Also since Nifty has already achieved Wave equality in Larger Degree 'C' at 5815 there is possibility of 5th Failure. So we need to be cautiously & not aggressively Bullish here.
Thanks & Regards,
Harsh Dixit.
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