Hi Friends, In my previous post I mentioned about Santa Claus Rally on Nifty. As mentioned Nifty indeed gave a Santa Claus Rally in 'X' wave of the complex correction to 7972 in Dec 2015.
However, 'X' wave seem to have truncated and complete at 7972. As expected Nifty started declining after completion of 'X' wave. Today after testing 7425 Nifty gave a vertical rise and closed positive. Nifty formed a long legged Doji; which is a sign of reversal. Nifty may bounce to 7633, 7699 or 7721 in next 4-5 days. Until Nifty stays below the Previous Resistance near 7980 it may further continue it's decline to 7200 and 6800 in 'Y' wave of the complex correction. Only a sustained move above 8000 would be an indication of end of downtrend. And hence, I would look for any alternate wave count only above 8000. The current decline is similar to the correction of 2011. Indian Market generally witnesses a major correction of approx. 30-40% in every 7-8 years. And it is observed that the corrective phase generally lasts for 11-13 months. Nifty Topped out in March 2015. So the current decline may last till April 2016; and Nifty may bottom out near 6800. April 2016 may bring once in lifetime opportunity to Invest in Equities. So lets wait and watch. Thanks & Regards, Harsh Dixit.
Nifty seems to Breakout of the trading range of 7850-8000
which can give good trading opportunity, as per
the hourly charts we are having resistance around 7970-7985 above which
nifty can touch 8040/8090 level.
Going forward we will definitely have clear
trend emerging from this week (hope with volumes) keeping a close watch for the
7985 spot closing shorts can be initiated for at least 150-200 points.
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So as per our previous post onto Tata Steel it finally touched our tgt of 260 and made a high of 266,we recommended to initiate longs around 216-218 lvls as on post dated 14/11/2015.
Going forward we are having a formation of WOLFE WAVE PATTERN(these pattern are very strong pattern which are very common in Professional Trading Community) in Tata Steel if 266 lvl is not breached onto closing this Trade Setup Can Really hammer the stock down to lower lvl 245-240.
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HEY FIRST OF ALL A VERY HAPPY NEW YEAR 2016 TO ALL.
As per our previous post Nifty(spot) managed to give us a closing above 7860 as of now market structure does not looks convincing for an quick up move the volumes are really shallow we are to have some kind of directional move after 4th jan 2016 onward till then it will be trading in range of say 150-200pts i.e 7800-8000 now if (spot) nifty makes a closing above 7985 then that will be the first indication of bulls overpowering the bears, so for all shorts stp is 7985.
Going forward we still maintain markets to face resistance 7928/7946/7970
shorts can be initiated with strict stp 7985
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