Nifty- Bounce to relieve oversold indicators

WaveTalks Updated   
NSE:NIFTY   Nifty 50 Index
L-S Long first & short later
When this whole structure started, I visualized that its powerful trade setup & I was all the way short from 8800-8850 when we had these overlap waves as suggested that i-ii-iii-iv-v to give us larger wave-1 then dramatic wave-2 which had trump victory- gave us 8600 top-later we had again down -down & down move.

What Next?
Looking for a bounce for the zone 8025-8045 but be careful 8050-8060 shall act as resistance going above 8050- 8055 it can extend upside till 8090-8100 target zone

Short Trade can be taken only going below recent low@7915 for target zones- 7860-7870 or in the zone 8025-8035 with strict stops above 8050.

3 strong reasons for me to take selling positions (All analysis attached below as related analysis)
  • Overlap structure called as leading diagonal which always gives exciting trade once identified in time- it was downside leading diagonal in Nifty it was expanding structure & in Bank Nifty-it traced out as contracting structure.

    USDINR not breaking 66.20 & bouncing again & again -here we go with 68.20 in latest trading sessions

    India ETF-INP in B-Wave Triangle

Larger Picture
India Nifty looks to be in yet to complete C-wave within 4th wave

Most Exciting Opportunity
Most Exciting was getting at the top of market at 8600 when whole world was bullish with risk of only 20-30 points - analysis can be referred in related "Catching double top to start downside"

Trade active:
09:54 Hrs 22nd Nov2016

Last Price@7968

Yesterday closed at 7946 -- look today recent fall just turned from 7946 - Standing across the mirror

Trade active:
10:10 Hrs 22nd Nov2016

Last Price@7972

Pushed 30 points up from 7946 yesterday's close likely -book partial profits & let us wait outside
Trade active:
10:51 Hrs 22nd Nov2016

Last Price@7960

There is downside pressure in the market going below 7915 definitely it is down to target zone 7860-7870

Also 7985-8000 is a resistance zone
Trade active:
06:55 Hrs 23rd Nov2016

Last Price@8002

Opening High & closing high as of yesterday coming in close proximity giving us double top@8020

So any move above 8020- we could see in tranches or parts first in the zone 8045-8050

Going above 8050 for 8090-8100

Sustaining above 8120 -only upside

Swing low@7938 is very important going below that can put nifty in pressure again for the target zones 7850-7860

Trade carefully,

Trade active:
09:55 Hrs 23rd Nov2016

Last Price@7990

Nifty got resistance between 8050-8055 as suggested earlier post gap up opening & had a sharp sell off- bears are in control- who ever taken sell positions at day high can continue going below 7950 & sustaining & breaking 7938 swing low - can look for 7850-7860 as suggested in previous update.
Trade active:
13:26 Hrs 23rd Nov2016

Last Price@8025

Can you see RSI has relieved from oversold zone of 20-25 so that bears can have another bang on movement (with strict stops above 8101)

Nifty moving in a channel. This upside move could extend till 8070-8080 which is the top band of the channel-if at all it goes to that zone or it starts falling in the middle.

Risky Traders- Can hold with 8101 stops

So, nice place to sell will be close to 8070-8080 with strict stops above 8101 (1 tick above 8100)

Or selling below 7950 & watching for 7938 to break downside for target 7915-720 where it holds below 7915 shall go to 7850-7860 zone.

60 mins chart

Trade active:
08:07 Hrs 24th Nov2016

Last Price@8033

SGX Nifty at 7965- Down 40 points, European markets down yesterday. USDINR@68.70's

Likely, the channel shall be broken with a gap down.
Trade active:
09:41 Hrs 24th Nov2016

Last Price@7983

If Nifty goes below 7970-7980 then only bears will become active else bounce back can be expected. Going below 7970 for targets 7915-7920 & going below 7915 for 7860-7870
Trade active:
10:05 Hrs 24th Nov2016

Last Price@7992

Bounce back should be used to sell not to buy -likely if Nifty goes above yesterday's swing high & sustains above 8045-8050 then it will extend to 8090-8100.

8100 is a very important level, which can be used for selling at close by zone of 8100 with stops above 8101-

Selling only below 7970-7980 if sustained for target zone 7915-7920 & if sustained below 7915-7920 then zone of 7860-7870 can be looked.

Best Regards,
Abhishek H. Singh
​Growth Director - TradingView India

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