Thursday, May 21, 2009

Possible scenarios on Nifty

CASE - I
1. Nifty retraces to 3900 (1st month futures)
2. If 3900 breaks, then very likely scenario will be 3500 to complete the bearish Wolfe Wave......

CASE - II
If 3900 holds, then the wave fails and Nifty might move up with confirmation of breakout (In this case a cup-formation in the base followed by handle creation and eventual breakout above the brim of the cup)

CASE - III
Nifty hold 4052 or ends somewhere between 4052 and 3900 creating a repeatition of 1993 patterns......

NOTE: In both the cases II and III, the GAP will not be filled in many years to come and the following targets will be met.....

SENSEX @ 23200 and Nifty @ 6600 (approx) by Mar 2010, IFFFFF Case I fails ie. the Wolfe Wave is not fulfilled and/or the GAP is not closed within 5 trading sessions from the day of creation.....

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Disclaimer:

Investing in stock markets carries inherent risks. Readers are requested to consult their financial adviser for trading / investing. The views expressed here are solely that of the author and he wont be responsible for any gains or loss arising to the readers for trading based on the expressed ideas.