NIFTY 50 completed its sub wave (i) of the 5th major wave @18604 on monthly charts in OCT 21.
The recent ATH of 18887 was the completion of corrective wave B of the correction wave ABC which will be completed after forming the C wave which should complete near the last lows of 15200.
RSI divergence on monthly charts supports the down move of the market from recent highs.
This view gets stronger if the DEC 22 monthly candle closes below 18137 forming a bearish engulfing candle on the monthly charts.
Strategy: We can adopt sell on rise till the market completes the corrective wave ABC completing the sub wave (ii) of the 5th major wave.
Otherwise: If the market rallies from the supports of 17950-18120 zone and crosses the ATH of 18887 and forms a 5 wave structure, it will indicate the completion of sub-sub wave 1 of the 3rd sub wave of 5th major wave which will nullify the bearish view.
Disclaimer: The above view is on monthly charts so use it accordingly to trade on shorter time frames.
The recent ATH of 18887 was the completion of corrective wave B of the correction wave ABC which will be completed after forming the C wave which should complete near the last lows of 15200.
RSI divergence on monthly charts supports the down move of the market from recent highs.
This view gets stronger if the DEC 22 monthly candle closes below 18137 forming a bearish engulfing candle on the monthly charts.
Strategy: We can adopt sell on rise till the market completes the corrective wave ABC completing the sub wave (ii) of the 5th major wave.
Otherwise: If the market rallies from the supports of 17950-18120 zone and crosses the ATH of 18887 and forms a 5 wave structure, it will indicate the completion of sub-sub wave 1 of the 3rd sub wave of 5th major wave which will nullify the bearish view.
Disclaimer: The above view is on monthly charts so use it accordingly to trade on shorter time frames.
