An Ending Diagonal Expected In Nifty...

NSE:NIFTY   Nifty 50 Index
178 10
Dear readers, in my last post on Nifty , it had been mentioned that Nifty is expected to touch the new lows breaching its recent previous low of 7916.40, and the same is visible from the chart, as the development on the chart of Nifty suggests so.
However, the choppiness 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 choppiness and range bound trading.
The choppiness in the market is expected to continue for one or two more trading sessions as Nifty looks to be forming an Ending Diagonal , 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 Ending Diagonal . 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.
Comment: As expected, Nifty has been moving in the narrow range for the last two trading sessions. Also, the way the Nifty is moving it looks like it tries to make an impression among the traders that it is taking support at the levels of 8050 & 8070. This act of the Nifty is getting succeed as many of the traders are getting confused and feelling either afraid of the short covering or sudden bounce or may miss the chance of the rally. So, rather getting confused or get feeling of afraidness or anything else, just keep calm and let the market do what it wants to do. The market is giving slower but firm southward movement. Do not get hectic on some short spanned upside rally.
Comment: Yesterday, there has been a huge unwinding in the open interest of put options of Nifty, on other hand huge build up (nearly 13.50 lcs) in the call option of strike price of 8100 of Nifty was noted. There may be many reasons to it. One of the reasons, that strike to my mind is that, if the unwinding in put options and huge build in call options have been done by the big players, then why the Nifty is still sustaining below 8100? I would rather prefer to wait and watch than to indulge in any big move or make some serious mistake.

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.
Thanks again. Wish I could click like button more than once. :)
Nice one. You nailed it.
sgor1980 nirav5
@nirav5, Thanks Nirav. Thanks for your appreciations.
Thanks! So that was not the real reversal. It just went and made a lower high to touch it's upper range.
Thanks for the updates. Can you please use the bigger font size for the wave counts as it's little difficult to read for the intermediate ones.
sgor1980 nirav5
@nirav5, sure... next time i would keep that in mind... plz note that the plus sign appearing in the chart enables you to zoom in...
nirav5 sgor1980
@sgor1980, Thanks. I think that plus symbol is visible to the post owner, viewers can not zoom in.
sgor1980 nirav5
@nirav5, no it is available to the readers of the post too. just get your cursor in the middle of the chart at bottom you will see the move left, minus, refresh, plus and move right buttons...
nirav5 sgor1980
@sgor1980, Aah, Found it. :)
sgor1980 nirav5
@nirav5, Great!
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