Black Money Hole created due to the unprecedented move of Income Tax Department having raids across multiple places or cities on 10th Nov2016 post market hours shocked the market & as a result- there was a carnage across Dalal street on 11th Nov2016. The market opened gap down to start at 8460 from previous close of 8520 & made a new low@8284.
If you observe- A sharp rally was followed by sharp decline giving a v-structure which denotes the overall trend could be a downside trend, but likely we will wait if Nifty can give us close below 8150-8175 zone- which will be the sign of more weakness & a new low below 8000 could be expected in that case.
The move started from 8600 could be the start of the 3rd wave down, but likely we want Nifty to go below 8150-8175 zone to give us more confidence.
Another alternate could be this C-wave internally could be divided as a-b-c itself, but once Nifty goes below 8150-8175 -we will drop this alternate count.
Likely, if we get a bounce, which will face resistance from Black Money Hole 8460-8520- one could take their chances of having a bias unless Nifty starts trading above 8520 & sustains.
Picking The Top Again at 8600
Abhishek H. Singh, CMT
India Regional Manager
India Markets-BSE, NSE chat room- https://in.tradingview.com/chat/#b4sFOMIVqPkq8gfQ