3 January 2017

IS NIFTY READY FOR THE NEW BULL RUN IN A NEW YEAR??

Hi Friends,

As mentioned in my previous post Nifty took Support near 7896 and gave a sharp Rebound. Nifty broke the resistance of 8110 and tested 8212. Nifty has taken Support at the 50% Fibonacci Retracement and formed a Double Bottom near 7900 with Positive Divergence on RSI. All these are signs of possible Trend Reversal.
NIFTY
In my previous post I also mentioned about Head & Shoulders Pattern. The Neckline of the HnS is near 7900. To Break the HnS Bears need to break the support at 8110-8065 and finally the Neckline near 7900. Currently Bears seem to be on loosing side.

As mentioned currently Nifty might be still in Corrective Mode in Wave (II).  Until Bulls take out Previous Swing High of 8275 Nifty would Remain in Down Trend. Bull Market will Resume above 8275, 8338. If Bears break the support at 8065 and 7896 Nifty may Decline to 7678 or lower to 7489.

Currently we need to watch price action near 8065 and 8338 carefully to determine future course of action. As mentioned Nifty is in Wave (II). Investors need to find Stock Specific Opportunities over next 2 months to make Investment in Equities. Those who missed the Opportunity in Feb 2016 can surely look to Invest in next 2 months as the Market Bottoms Out.

Thanks & Regards,

Harsh Dixit.