NIFTY WEEKLY EW UPDATE

Hi Friends,

In my previous post I mentioned about possible Bottom in Nifty upon breakout above 8550. After testing 8000 on News of Demonetization Nifty rebounded sharply. Bulls tried to cross 8550 however failed to sustain above it. Nifty started declining again and tested 7916. Nifty tested important support of previous Swing Low and started bouncing again and closed above 8100.

Nifty Weekly

Currently Nifty seems to be still in Corrective Mode in Wave (II). On weekly chart Nifty has given a Hammer close which is an Indication of short term Trend Reversal. If Bulls manage to take out 8140 Nifty may rise to 8240, 8285 or Higher to 8337. If Bulls fail to protect support at 8065 Nifty may start declining again and may test 7850. Currently there is no indication of end of Bear Phase. However if Bulls manage to break above 8550 Resistance it will be an indication of start of Fresh Bull Run. If Bulls manage to take out 8550 and sustain above it on weekly closing basis Nifty may rise in Wave (III) to 10500, 11500 or Higher in next 8 to 12 months.

Currently we need to watch price action near 8330 and 8550 carefully to determine future course of action. Currently there may be a Bounce in Nifty and the Final Bottom may occur in Jan 2017. Investors need to find Stock specific Opportunity to make Investment in Equities. Those who missed the Opportunity in Feb 2016 can surely look to Invest in next 2 months.

Thanks & Regards,

Harsh Dixit.