Nifty 50: Genuine Rally or Selloff Setup?The Nifty 50 Index went up, but this upward move was likely just a temporary correction, not the start of a new, long-term rise.
Bottom (Wave W): The index first hit a low around 24,377
Bounce (Wave X): It then went up to a high near 25,448 . This rise was a clear, three-part corrective move (like an ABC pattern) that stayed inside a rising channel .
Clue: Because the move from the bottom (W) to the peak (X) was corrective, it suggests the overall trend is still bearish (downward).
Points to look at:
1. Reversal: The index is currently around 24,836 and is starting to turn down from the top of that rising channel. This suggests the temporary rise is over.
2. Projected Drop (Wave Y): The main prediction is a significant drop (Wave Y) that will likely break the previous low of 24,377 .
3. Target: This decline is expected to head toward the lower blue trendline on the chart, completing a larger WXY corrective pattern.
4. Projection: Ending point of wave (Y) can act as the ride for the new impulse cycle.
5. Bearish Stance: Traders should be cautiously bearish (expecting the price to fall).
6. Price action perspective: Previous swing is bearish, better to look at short positions for safe entry.
7. Selling Opportunities: Any small upward movements (retracements) are seen as good selling opportunities (betting on the price going down), as long as the price doesn't break above the recent highs or the channel ceiling.24,300 is indeed a strong demand zone.
Stay tuned!
Money Dictators :)
