The bull run we are witnessing may be wave 4 of the downward rally in Nifty.
In that case, we may expect a collapse from here. Currently nifty is trading close to 18100 which corresponds to 0.618 levels of the downward Elliot wave.
This level should be a stiff resistance for nifty. Next week market may open with a gap up and can get sold into.
Day closing above 18100 will nullify this view.
Based on Fibonacci extensions wave 5 can take nifty to 16500 levels by June end.
In that case, we may expect a collapse from here. Currently nifty is trading close to 18100 which corresponds to 0.618 levels of the downward Elliot wave.
This level should be a stiff resistance for nifty. Next week market may open with a gap up and can get sold into.
Day closing above 18100 will nullify this view.
Based on Fibonacci extensions wave 5 can take nifty to 16500 levels by June end.
Trade active:
Though nifty closed above the day's candle was a weaker doji in a shooting star pattern. Bank nifty and Finnifty closed in red candles. This suggests weakness and potential reversal in the market. The rise in vix combined with weakness in global markets holds our view intact.
Now we can have a long view only when day candle closes above yesterday's high in both nifty and bank nifty.
Now we can have a long view only when day candle closes above yesterday's high in both nifty and bank nifty.
Trade closed: stop reached