As shown in chart the numbers are major degree and roman letters are minor degrees, we have posted many Nifty charts earlier here and in our trading room. 11743 was resistance as per our previous analysis. on Monthly chart, Nifty has completed 5th Wave which around 100% of Wave 1, one of the criteria defined in EW theory. So basically we are in major correction phase.
Correction phase has 3 Waves, A-B-C.
Where Wave A will end can be tracked down from Price Action while B and C can be predicted as per EW theory.
Wave A will take support at minor support zone, which as per Price Action lies at 9950-10120.
If Nifty sees bounce off from this zone, it will move towards Wave B
Wave B may bounce back upto 10700 - 11100 and technical analyst would see Head and Shoulder Pattern. TV experts might see it as resumption of bull market, the volume in wave B will be lower than Wave A. The economy fundamentals will not show much improvement but they will not show any signs of crisis/negative impact.
Wave C might end at channel support around 9600-9780 but it has huge probability to go down further, earlier Nifty has retraced back to more than 50% of previous impulsive waves. With that in mind we can see Nifty going down to 8800-9300.
Nifty chart tells us that correction may last for an year. So there's long way for bulls to wait and investors just keep picking good value stocks on dips during Wave C.
Gann Time Analysis says, that period lies at July-August'2019.
We have drawn one vertical line depicting August'2019 in our previous chart much earlier, you can check here.
After EW ends, investors should have lot of patience to see real bull market.
Correction phase has 3 Waves, A-B-C.
Where Wave A will end can be tracked down from Price Action while B and C can be predicted as per EW theory.
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Wave A is typically accompanied with large increased volume, rising implied volatility and higher open interest, analyst may term this as correction in still a bull market.
Wave A will take support at minor support zone, which as per Price Action lies at 9950-10120.
If Nifty sees bounce off from this zone, it will move towards Wave B
Wave B may bounce back upto 10700 - 11100 and technical analyst would see Head and Shoulder Pattern. TV experts might see it as resumption of bull market, the volume in wave B will be lower than Wave A. The economy fundamentals will not show much improvement but they will not show any signs of crisis/negative impact.
Wave C might end at channel support around 9600-9780 but it has huge probability to go down further, earlier Nifty has retraced back to more than 50% of previous impulsive waves. With that in mind we can see Nifty going down to 8800-9300.
Nifty chart tells us that correction may last for an year. So there's long way for bulls to wait and investors just keep picking good value stocks on dips during Wave C.
Gann Time Analysis says, that period lies at July-August'2019.
We have drawn one vertical line depicting August'2019 in our previous chart much earlier, you can check here.
Trade active:
As per analysis, Nifty touched our zone at 10138 yesterday and we went long. Incase it again comes down into the zone we will again add our quantities or will take decision as per chart formation.
Trade active:
Earlier position we closed at 650 as per our description above and again went long on nifty on Monday. You can follow on Twitter.