Nifty broke the 6 day range today with low volumes and -ve breadth.Important points for today.
1.Nifty down by 0.5% with 0.6 breadth.
2.40th day since the lows of 4786(33 days of downturn).
3.5 days since the closing highs of 5400.
Nifty drifted down today during closing hour.If the downside continues for next 1-2 days, then Nifty may be headed for sub 5000 levels by next week.Besides the crash scenario for the bearish possibilty,I have one more scenario that I think also aligns with the natural indicators.
Scenario1 is that Nifty crashes down to 4000-4300 levels before giving a sustainable bounce and then again goes down to 3500-3700 levels.In this case, the first 10-12 days after a high ,Nifty should breach the earlier lows of 4786 and go possibly lower towards 4500/4600 levels in first downswing.
Scenario2 is that Nifty is undergoing 5 waves in the 5th weekly wave that started from Feb6th.ie Currently Nifty is in wave3 of Wave5 to be followed by Wave4 and Wave5 with possible targets for Wave5 of Wave5 5500+.This case will become active if Nifty's reversal from 5453(wave3) does not breach the previous intraday/weekly lows of 4786/4931 and then bounces back.
No comments:
Post a Comment