Hi Friends,
In my previous post I mentioned about Santa Claus Rally on Nifty. As mentioned Nifty indeed gave a Santa Claus Rally in 'X' wave of the complex correction to 7972 in Dec 2015.
However 'X' wave seem to have truncated and complete at 7972. As expected Nifty started declining after completion of 'X' wave.
Today after testing 7425 Nifty gave a vertical rise and closed positive. Nifty formed a long legged Doji; which is a sign of reversal. Nifty may bounce to 7633, 7699 or 7721 in next 4-5 days. Until Nifty stays below the Previous Resistance near 7980 it may further continue it's decline to 7200 and 6800 in 'Y' wave of the complex correction. Only a sustained move above 8000 would be an indication of end of downtrend. And hence, I would look for any alternate wave count only above 8000.
The current decline is similar to the correction of 2011. Indian Market generally witnesses a major correction of approx. 30-40% in every 7-8 years. And it is observed that the corrective phase generally lasts for 11-13 months. Nifty Topped out in March 2015. So the current decline may last till April 2016; and Nifty may bottom out near 6800.
April 2016 may bring once in lifetime opportunity to Invest in Equities. So lets wait and watch.
Thanks & Regards,
Harsh Dixit.
In my previous post I mentioned about Santa Claus Rally on Nifty. As mentioned Nifty indeed gave a Santa Claus Rally in 'X' wave of the complex correction to 7972 in Dec 2015.
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| NIFTY |
Today after testing 7425 Nifty gave a vertical rise and closed positive. Nifty formed a long legged Doji; which is a sign of reversal. Nifty may bounce to 7633, 7699 or 7721 in next 4-5 days. Until Nifty stays below the Previous Resistance near 7980 it may further continue it's decline to 7200 and 6800 in 'Y' wave of the complex correction. Only a sustained move above 8000 would be an indication of end of downtrend. And hence, I would look for any alternate wave count only above 8000.
The current decline is similar to the correction of 2011. Indian Market generally witnesses a major correction of approx. 30-40% in every 7-8 years. And it is observed that the corrective phase generally lasts for 11-13 months. Nifty Topped out in March 2015. So the current decline may last till April 2016; and Nifty may bottom out near 6800.
April 2016 may bring once in lifetime opportunity to Invest in Equities. So lets wait and watch.
Thanks & Regards,
Harsh Dixit.
