Nifty closed above the 4630 for 2 consecutive days and created a sense of comfort among investors. But the third days confirmation failed and Nifty slid to 4582. This throws a lot of uncertainties in the market. On Friday, we saw all major stocks in the red while Reliance rallied up by 2.5%. The Reliance rally helped Sensex close in with weekly gains while Nifty in red. The following possibilities open up now.....
1. Nifty completed the bearishness in 5-min intraday chart at 4580 and ultimately held on to that. If we can hold on to 4580 on Monday morning, we might again see a rally upto 4727 (1-month futures). If 4727 is achieved, then Nifty will complete a medium term bullish wave.
2. If Nifty fails to hold on to 4580 for more than 15 mins, then we might see 4512 very fast. After that a few days consolidation will be seen between 4520 and 4650. Eventually Nifty will fall to 4245 by 22nd June (A bearish wave has started to form for the wave cyscle between 19th May and 12th June. 5th leg has been completed and the 6th bearish wave is in formation stage.) If CASE - I holds and Nifty moves ahead after that then only this bearish 6th wave will be neutralised, else we can surely see 4245 by 22nd June.
3. Even if Nifty follows CASE - I and goes to 4727, yet the 6th bearish wave as explained in CASE-II will exist. But, if Nifty stays above that for 3 consecutive days, the 6th bearish wave will die and the current progress will assume the formation of 3rd upwave and a different balance will get decided eventually.
So watch out for 4580 currently and trade carefully. Reliance might face some challenge here around 2390 but above that its goes into no-resistance zone. SBI should bounce from 1630 levels.
Happy trading !!!
1. Nifty completed the bearishness in 5-min intraday chart at 4580 and ultimately held on to that. If we can hold on to 4580 on Monday morning, we might again see a rally upto 4727 (1-month futures). If 4727 is achieved, then Nifty will complete a medium term bullish wave.
2. If Nifty fails to hold on to 4580 for more than 15 mins, then we might see 4512 very fast. After that a few days consolidation will be seen between 4520 and 4650. Eventually Nifty will fall to 4245 by 22nd June (A bearish wave has started to form for the wave cyscle between 19th May and 12th June. 5th leg has been completed and the 6th bearish wave is in formation stage.) If CASE - I holds and Nifty moves ahead after that then only this bearish 6th wave will be neutralised, else we can surely see 4245 by 22nd June.
3. Even if Nifty follows CASE - I and goes to 4727, yet the 6th bearish wave as explained in CASE-II will exist. But, if Nifty stays above that for 3 consecutive days, the 6th bearish wave will die and the current progress will assume the formation of 3rd upwave and a different balance will get decided eventually.
So watch out for 4580 currently and trade carefully. Reliance might face some challenge here around 2390 but above that its goes into no-resistance zone. SBI should bounce from 1630 levels.
Happy trading !!!
1 comment:
Now that We have seen 4223 levels. and the 6th bearish wave is complete. Where do we go from here.
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