With budget coming up around the corner and FIIs pulling out a little and overall sentiment of players ranging from - sitting on the fence to fear (of missing out or a looming crash). Hence, in an effort to decode the patterns and present a high probability hypothesis - starting a 'weekly technical tactical' series to follow the movements in an endeavor to find some high probability opportunities overall or in individual counters.
Week starting Jan 24, 2022, here's your executive summary of the "big-picture" hypothesis:
Analysis Framework - Elliot Waves, Multiple Moving Averages across Multiple Time frames, Momentum-Divergence Analysis
-Nifty is at a crucial support band (17,600 to 17,000) - represented by dynamic crucial weekly EMAs.
- Below 16,580 levels, there's a risk of a downslope to 16,190 - 14,500 - levels. It would entail that we are currently in a corrective of (2nd wave after 1st down-wave), and therefore, the downfall could represent a strong 3rd impulsive down-wave
- If Nifty breaches the 18600 levels with strength, then it opens up for further upside. It would represent that we are in an extensive 3rd impulsive up-wave and could reach the stratosphere before gravity switch finally switches-on.
Inference - remain cautious with good risk management in existing positions - preferable in individual stocks with hedging through nifty/stock options and good stop losses. Further, recommend not to take leveraged positions and follow this space for daily analysis of opportunities and risks.
Week starting Jan 24, 2022, here's your executive summary of the "big-picture" hypothesis:
Analysis Framework - Elliot Waves, Multiple Moving Averages across Multiple Time frames, Momentum-Divergence Analysis
-Nifty is at a crucial support band (17,600 to 17,000) - represented by dynamic crucial weekly EMAs.
- Below 16,580 levels, there's a risk of a downslope to 16,190 - 14,500 - levels. It would entail that we are currently in a corrective of (2nd wave after 1st down-wave), and therefore, the downfall could represent a strong 3rd impulsive down-wave
- If Nifty breaches the 18600 levels with strength, then it opens up for further upside. It would represent that we are in an extensive 3rd impulsive up-wave and could reach the stratosphere before gravity switch finally switches-on.
Inference - remain cautious with good risk management in existing positions - preferable in individual stocks with hedging through nifty/stock options and good stop losses. Further, recommend not to take leveraged positions and follow this space for daily analysis of opportunities and risks.
Comment:
NIFTY took support at 17k levels as analyzed in the post.
