Nifty Elliot wave update. As per my primary wave count, Nifty is in wave 4 of (3). 4 is almost complete and is taking support at 40 day moving average, however when I go into smaller timeframe wave 4 may have one last dip left and it can go till 13850-13750, where it meets the lower trendline (in green) of expanding triangle and low 21st Dec crash and the rising channel from the low of wave 2, 40 day moving average is at 13879.
Having said that, With Call writing at its highest since March, momentum indicator is at it's lowest from where market has bounced twice before in a new impulsive rally.
The alternate is that this 4 day selloff is just Wave A of (4) and the bounce from here will be wave B and C down will follow later. Will update as more evidence develops, As of now, the fall looks corrective in nature, if it develops into 5 wave decline then the bounce will be corrective wave B od (4).
Having said that, With Call writing at its highest since March, momentum indicator is at it's lowest from where market has bounced twice before in a new impulsive rally.
The alternate is that this 4 day selloff is just Wave A of (4) and the bounce from here will be wave B and C down will follow later. Will update as more evidence develops, As of now, the fall looks corrective in nature, if it develops into 5 wave decline then the bounce will be corrective wave B od (4).
Trade closed: target reached