(Please click on the charts to see them better)
Nifty 50:
It has been some time since I last looked at the Nifty 50 index. I was actually expecting a wave C of II correction closer to 4,531 (see my last analysis here). However, as can be seen we didn't even come close to 4,531 as the low came in at 5,113. Having reviewed the chart I have changed my count to a much more bullish count. The rally of the 4,531 low in December 2011 does have five waves, but wave i and iv overlaps, which leaves us with only one impulsive possibility and that is a leading diagonal. When I made may last analysis in August 2013 I thought the odds did favor an A-B-C correction as wave B and therefore was looking for a wave C lower to 4,531 in a flat correction, but the rally of the 5,113 low in late August 2013 is clearly impulsive in nature and that ultimately calls for more upside action. That said for the coming weeks I will be looking for a minor wave c of 2 towards 5,700 before we should expect the next upside pressure to take over.
I'm still looking for wave C of red wave iv towards the 58.64 - 59.04 area before the next upside pressure is expected for a rally above 69.22. However for now we should concentrate on the downside for a break below 60.84 confirming the decline towards the 58.64 - 59.04 area before higher.
No comments:
Post a Comment