Nifty- Struggling between 8550-8600

Friday, 14th Oct2016 -a non trending day for traders as markets were range bound between 8550-8600. Likely, whenever it went close to 8600- I was bearish & even after it was about to cross 8600- I strictly updated that buying will be a risky element & traders could get trapped- In last time slot, which was even evident -just went & made new high@8604 & turned sharply down till 8575.

Whenever markets do this kind of trend- it is always better to stay sidelines of the market rather than guessing where it will head & getting frustrated.

So, I said, let Nifty break 8550 then it will indicate that weakness is still left-in that case we shall look for target zone 8480-8490 & bounce later on.

This bounce has to be substantial as structure from 8968 highs it is leading diagonal has five waves i-ii-iii-iv-v waves each wave is divided internally into 3 waves.
These leading diagonals are retraced deep so I am expecting a bounce in the zone 8850-8900 but it should not go beyond 8968 highs otherwise -this whole structure will become invalid.

So, let us not hurry, one thing at a time- let nifty first fall below 8550 - to see how much it travels down & whether it takes support in the desired zone of 8480-8490.

Regards,
Abhishek H. Singh, CMT