murthyonline
Education

Nifty in 5.1 wave

NSE:NIFTY   Nifty 50 Index
NIFTY target was expected at 11680 but there was a throw over to 11761 just breaking the ATH by 1 point and making a double top .
A perfect double top needed nearly 6 months gap and Nifty exactly done that. A double top indicate bearish implications.
Moreover the weekly chart doji and the high premium points to some cooling off.

As detailed in last post NS made the first point : Lower low indicating weakness.
2nd point was it has to give 2 closes below 5 sma in heikinashi candle, one already made and second with a doji just below it.
We can also see the MACD signals are on the verge of a cross over and expected this to happen by Monday or Tuesday.

In this chart plotted the 5 SMA and 9 SMA . The first support can be the 9 SMA and once the 5 SMA breaks the 9 SMA the
momentum of fall can accelerate. Also plotted the chart with the Fibo fan with the levels of support and resistance in relation to time. The whole chart can be seen by reducing the size by using the cursor.

These are the views for the next week and all the shorts are with SL of 11768.

It is also observed the behaviour of MACD that as the signals are above the 0 line, the histograms can open below 0 simultaneously with the the signal cross over and with 4-5 candles below 0 it can complete the fall. Once the histogram candles started becoming smaller below 0 the fall can weaken and the Nifty can start bouncing back for the next wave up. Signals are expected to take a U turn and c/o above the 0 line for the next up move wave.

The above view is purely educational and it may or may not happen and not a suggestion to take any trade. Anybody taking trade is requested to consult with his/her financial advisor before doing so as the writer or this website will not be responsible for any such actions
Comment: Typo mistake. Please read 11761 and 11680 in the first para.

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