However, the in the market is shaking out the confidence of the traders and creating confusion in them, as the market trades in a particular range the whole day except few minutes of trading. There comes big movement either in the early trading session of the market or in between and/or at the end of the day but just for the few minutes, and in the remaining trading session there prevails and range bound trading.
The in the market is expected to continue for one or two more trading sessions as Nifty looks to be forming an , a 3-3-3-3-3 wave, formation. However, after one or two trading sessions, the market may become more volatile and may create more confusion in the minds of the traders. So, it is advisable to the traders, who are on the short side of the market, shall start booking profits before or after the breach of the recent low of 7916. 40 , rather trying to eat the whole chunk
The inner wave (iii) of minor wave V is expected to get finished at or around 7865 - 7875, whether or not Nifty forms an . Traders having short side of position shall book part or full profit at or around this level.
Disclaimer: All the charts and views expressed here in this post are for educational purposes only.
The above chart of Nifty includes the intraday movement of Nifty from its low of 7916.40.
As expected, the big players constructed a trap for the small investors, whereas small investors had unwinded their bearish positions in the form of put options and built -up bullish positions by adding up call options of 8100. Nifty though tried to sustain above 8100, but in the later, or say the last, sessions of the day, it cleared it position ny giving downward movement.
The way Nifty and other stock started moving southward, it looked like the bulls have lost their grip and bears have got their full grip over the market. Over the next few sessions the market is expected to be in much more volatility, as bulls will try its best to regain their grip over it and the bears will try to hunt down the bulls. Keep yourself safe with booking profits over some intervals, so that you do not get crush between the fights of "Bulls & Bears".
At Last Wish You All Best Luck!
It was expected that Nifty has been forming an "Ending Diagonal Triangle", though it now looks like it is forming an "Expanding Diagonal Triangle". However, the formation or the internal wave counts structure remains the same, a 3-3-3-3-3 wave pattern, which is generally found in the last leg of the trend as is the case with an Ending Diagonal Triangle.
The fourth wave of this Expanding Diagonal Triangle looks to have got completed. The last fifth of the same is expected to give fast movement and may go below the support line as shown in the chart above.
Nifty has shown a short covering rally from its low of 7893.80, made a day before yesterday, to its today's high of 8100.55 until now. After, making a high of 8100.55 today in the intraday session, Nifty gave a fall of almost 60 points. This indicates that the Nifty is ready to go southward and make new low, breaching 7893.80.
However, any new shorting done shall be covered if it breaks or sustains above 8100.55. This may add up to another higher level for short covering. The possibility of the "Expanding Diagonal Triangle" would be negated if only there comes any move above 8225.90.
Besides, if Nifty breaches 8041.50 point and go below that, then the possibility of its breaching 7893.80 by tomorrow would go high.