Skip to main content

Nifty : Bulls & Bears, Who Rides On What?

"Nifty : Bulls & Bears, Who Rides On What?" Well, the discussion on this issue can be an endless. However, the importance and the very existence of both makes the market more reliable and provides an endless opportunities for both buyers and sellers. And I think there is no doubt about it and everyone agrees on it unanimously.

Above is Nifty's chart on daily time scale, showing move from 6825.80 to 9450.65. I have tried to simplify and put forth my point of views as far as possible and also have put up some notes in chart as well.

Below are some of my observations, that I would like to put forth the readers:

(i) The move from 6825.80 to 8968.70 in Nifty looks to be a leading diagonal formation. A leading diagonal can be wave 1 of impusive run or wave A of corrective pattern A-B-C.

(ii) The total fall in Nifty from 8968.70 to 7893.80 was 50% of its total rise from 6825.80 to 8968.70 in simple A-B-C formation.

(iii) The rise in Nifty, from the low of 7893.80 to 9450.65, looks to be a three waves formation, untill now, whereby, Nifty more or less looks to have finished its upside move with completion of wave v of wave C/3 @ 9450.65.

(iv) Also, the move from 7893.80 to 9450.65 is more than 138.20% of total fall from 8968.70 to 7893.80. So, the possibility of irregular B wave of flat corrective pattern (3-3-5) is ruled out. But, the possibility of wave X cannot be ruled out at this point of time.

(v) Wave C/3, has total rise of 1123.45 points which is almost 2x of wave A/1, which had total rise of 567.25 points.

(vi) Wave i, iii of wave C/3 have total rise of 654.95 points and 413.80 points respectively.
(vii) As wave iii of wave C/3 is shorter than wave i of wave C/3 wave v cannot go/end beyond 9488.95, as third wave cannot be shortest among imulsive wave one, three and five.

(viii) Nifty was closed at 9422.40 having P/E ratio of 23.93.

If 9450.65 is the end point of wave X then market may see downward movement upto or beyond 7893.80. Also, a bearish divergence is visible on MACD oscillator on daily time scale of Nifty's chart. Besides, it is observed that the Nifty might form an Evening star formation if it opens below close of 11th May, 2017 candle and closes near or below the opening price of 10th May, 2017 candle.

Let us see what happens on 12th May, 2017 and what market brings out for the traders & investors.


All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade nor does it or the publisher of it guarantee any sort of return or the correctness of the post or any materials.

Undertake proper research and advice of your investment consultant before taking any trade.

Trade at your own risk.

Twitter: @beta_trade

Popular posts from this blog

JetAirways: Complex Correction

Jet Airways, one of India's leading and biggest domestic airline companies, providing it services domestically as well as internationally, had came out with an Initial Public Offerings through book-building process way back in February, 2005. The ipo was subscribed by 16.2 times as compared to 17.27 millions shares that were offered for subscription. The ipo price was fixed at 1100 whereby the price range for the ipo was 950-1125.

The stock of Jet Airways got listed and started trading on BSE & NSE, India's leading stock exchanges, on and from 14th March, 2005. The stock opened at the price of 1155 being the low for the rest of the day, went to the high of 1338.90 and got settled/closed at the price of 1304.20 per share on NSE on the listing date. The stock made its all-time high of 1382.75 on 26th April, 2005 and still the same has not been breached after that. Moreover, the stock breached its issue price of 1100 on 21st September, 2005 and traded in the range of 970-112…

BHEL : Will It Make Or Break?

BHEL, since its low of 90.15, has been moving in a parallel channel line forming zigzag (5-3-5) movement on either side. Any breach of this channel's support line shall be confirmation for the stock moving further down and may breach its low of 90.15. 

However, until it breaches the channel's support line there is possibility that the stock may, sooner or later, complete its upside target which may finish with completion of another impulsive run from its recent low of 133.60 by touching or coming nearest possible to its upper resistance line.
Secondly, with the counts of complex correction there has been provided another alternate counts which suggest that the run from the low of 90.15 to its high of 182.75 was an extended flat corrective pattern. If this run was an extended flat corrective than the breach of support line or the recent low of 133.60 may confirm the same.
The fall from the high of 182.75 to 133.60 was a three wave pattern. If the stock is about to witness any …