Maybe.....Its the end of the road for now

I have been working on all possibilities for the last 4 hours....There are at least 4 waves occuring in Nifty Futures which makes the whole analysis very confusing....In my last article, I had mentioned of the possibilities of 16250 on Sensex and 4830 on NF. Both were met today and that too in only 3 trading sessions.......Really fast !!!!!

Now what?

The following things are observed in charts.....(more or less in both Nifty and Sensex)

1. Nifty has crossed 61.8% Fib retracement of the entire bear fall of 2008 and apparently entered into a new buying phase (for most retailers) while Sensex didnot and is currently just holding onto that level....


2. There are huge negative divergences found in the weekly charts of Nifty and Sensex......(look into the MACD, RSI. Further weekly stochastics have moved into the overbought region. In the last 3 trading sessions, daily stochs has moved from the oversold to bought territory....


3. The waves in the Nifty has completed 2 full wave cycles while that on the Sensex is just about to complete the 2nd cycle. Now the chances of going down to complete the bearish leg is more likely.

Given the above circumstances and also the S&P500 being weak on charts, I expect the Nifty and Sensex to top in a day or two. Barring a whipsaw of 1-2%, the Nifty should come down to 4200 and Sensex towards 14100. Yesterday's high should be taken as a top with a 1-2% whipsaw....