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.
Alternate 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
Comments
ShanTrader
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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 !!
WaveTalks
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@ShanTrader, Shan - Nifty is gone. When said at 8800 -people were not ready to believe. Look 7915. Nifty down 1000 points
ShanTrader
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@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.