Nifty-Carnage on Dalal Street- IT Raids & What Next?

NSE:NIFTY   Nifty 50 Index
13th Nov2016

Last Price-8311

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.

Trading Strategy
Likely, if we get a bounce, which will face resistance from Black Money Hole 8460-8520- one could take their chances of having a bearish bias unless Nifty starts trading above 8520 & sustains.

Picking The Top Again at 8600
Best Regards,
Abhishek H. Singh, CMT
​Growth Director - TradingView India

YouTube Channel https://www.youtube.com/channel/UCYcnYveYBNLD-Qp54hvZogw

Twitter Handle

Telegram Handle


A good analysis Abhishekji. It does with a general consenus among the traders for a small bounce up to the black money gap. From there its upto the markets to decide direction as a larger move up above 8600++ can still be on the cards , as you have already stated in your narration. Have a good holiday and we shall catch up again on Tuesday !!
@ShanTrader, Shan - Nifty is gone. When said at 8800 -people were not ready to believe. Look 7915. Nifty down 1000 points
ShanTrader AbhishekHSinghCMT
@AbhishekHSinghCMT, Wow !!!! What a superb call. I would say hats off to you on this one. Yes, optimistic bulls held on but end of the day the bears are the clear winners.
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out