Expect the market to come around 5050

In my last article, I was expecting around 4870 but the markets denied that and returned from 4940 after making a double bottom there.

Now, we have moved 350 points from there. If we take it from the recent lows of 4786, then its a whopping 511 points rally to 5297 made today. In percentage terms, thats exactly 11% rise from the lows of the fall.

Amazing it is.....Just calculate now.....When the markets corrected from 5398, it made a low of 4786 which a fall of 612 points....Thats again exactly 11% fall from the highs....This means that bulls and bears are still equally footed in this fight.....

Now, there was defintely some negligence from my side as well....There was bullish target A5-S' of the wave(A1-A2-A3-A4-A5) which defined a target of 5300 (S'), as charted out below but I didnot give a buy call....

Now observe the point S'. This point and point S on the left hand side make the 2 shoulders of of the Head at H. S and S' lie on the same horizontal line (deep red line). Also S' is the target point of the bullish as mentioned above. Further during the upmove from A5-S', the price pattern has created a wave in the form of B1-A5-B3-B4-S'. The diagonal of this comes to B4'. Also one see that the current price is at the top end of the parallel bar formed A5-B4-B4" and B1-B3-S' which is also hiiting the 2-sigma upper deviation in 20 period Bollinger Band.

Taking all things into consideration, I personally feel that Nifty has made an intermediate top around 5300 and maybe poised for a correction till 5050-5080 at least, which is the lower end the parallel bar. Infact, my expectations of the June expiry is around that.

Happy Trading !!!

Recommended books for reading

1. Technical Analysis Explained : The Successful Investor's Guide to Spotting Investment Trends and Turning Points

2. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance)
3. Elliott Wave Principle: Key To Market Behavior