Above is Nifty's chart on daily time scale, showing move from 6825.80 to 9450.65. 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 to understand and make proper decision:
(i) The move from 6825.80 to 8968.70 in Nifty looks to be a formation. A 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 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 divergence is visible on oscillator on daily time scale of Nifty's chart. Besides, it is observed that the Nifty might form an 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.