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NIFTY 04 June 2012: gap down – My retrenchment support 4789>4766>4740>4685. Do not attempt shorting after gap down opening.


You must read previous articles and watch above chart carefully to understand this article completely.

Right now SGX NIFTY is trading @ 4760, which is giving a hint for gap down opening nearly 60 points. It is very simple to assume that we are now going to break 4789 support in the process of gap down opening. I already have a view that break of 4789 has some important technical meaning. Moreover, situation can be worse if we start closing below 4830. It seems that we are headed towards that.

In between we have few supports which might be under test today.

  • 4790 = 76.40% from 5630 against the rise from 4531 to 5630. We must be opening near to this one with approximation of fewer points.
  • 4766 = we have seen a vertical dip from 5125 to 4903 few days back. 61.80% further dip from 4903 will end up at 4766. I am expecting pause on this levels.
  • 4740 = which is the reaction of actionary wave from 5136 to 5379. Take 1.618 times from 5136 or 2.618 times from 5379. It will give us 4740.
  • 4685 = any panic sell off in second half will give us dip near to this level. I will not expect any rebound/short covering or relief rally if we come at this level. (Only GOD can save us if hit this level today).

My strategy will be to watch and watch before taking any trade. I am still hoping that market should not extent its fall. Nearing to USA president election, I am expecting that politician from USA will try their best to save market.  

I am repeating this again –

“Look at time cycle. We had 13 days of fall and then 8 days of rise. (13 and 8 are Fibonacci numbers). Up coming down cycle may have a life of 1, 2, 3 or maximum 5 days. Today 5th day from 5020.

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Thanks & Regards,
Praveen Kumar
Mail id – Praveen@viecapital.com
Mobile number – 09893369889 


I’m Praveen Kumar, a seasoned Technical Analyst and stock market trader with over 25 years of experience in the Indian equity and derivatives markets. My passion for numbers and patterns led me to a dual career as a Mathematics Teacher and market technician. I specialize in Technical Analysis, with deep expertise in Elliott Wave Theory, derivatives strategies, and market forecasting. Over the years, my analysis and market views have been featured on NDTV Profit as a financial guest, along with published articles on reputed financial web portals, sharing insights on Nifty 50, Bank Nifty, and stock market trends. As a trader and analyst, I focus on interpreting price action, chart patterns, wave counts, and technical indicators to deliver precise market levels and actionable trade ideas. My approach blends classical charting with modern analysis tools to help traders navigate market volatility. Through VieCapital, I aim to share daily market analysis, trading strategies, and educatio…
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