You must
read previous articles and watch above chart carefully to understand this
article completely.
Important
development of charts –
- Nifty has 38.20% resistance @
5209 (from 5630 against the rise from 4531 to 5630). We have seen fall
from those resistance with high @ 5191. (remain untested even after
yesterday’s efforts).
- 5029 – It is 38.20% of rise
against 4770 to 5191.
- 5080 – Mid point of 5631 to
4531, hence a critical support. Some retrenchment is giving 5090 also. So
the range is 5090-5080 as support.
Nifty has
crossed 5191 for few minutes yesterday and then slipped with a confirmation on
chart tat 5209 is not an easy kind of resistance to cross. Thanks to baby step
reform by government of India
With yesterday’s
top I am in the position to plot this as five rising waves. I must say that no
matter what is happening in domestic and global front but charts are yet having
strength. Wave are as following: -
Wave 1 –
4770.35 to 4898.95 = 128.60 points (Up)
Wave 2 –
4898.95 to 4847.70 = 051.25 points (Corrective down)
Wave 3 – 4847.70
to 5190.20 = 324.50 points (Up)
Wave 4 – 5190.20
to 5041.70 = 148.50 points (Corrective down)
Wave 5 –
5041.70 to 5194.60 = 152.90 points (Up)
(Wave 3)
= 2.525* (wave 1) ~ 2.618*(wave 1) – This is key to plot this five wave. You cannot
plot anywhere you want. You cannot violate basic rules to plot waves. This is
most correct wave plotting in my view.
More over,
(Wave 5)
~ > (wave 1) – a required condition
Break and
trade below 5080 will surely push us lower today.
I have
said that as long as 5090 sustain we can expect the extension towards 5209 or
closer. I have considered that yesterday’s move was just one of that attempts
which failed.
Now
for today –
Once
again keep an eye on 5090-5080 as support. If it breaks then we will see fall
towards 5029 and then perhaps break of 5000 psychological mark.
On
higher side 5136 will be a tougher resistance to cross. Few days back I said
that above 5100, it is a sell-on-rise market. What we are getting is just the
confirmation of that. It is not easy to stand or taking short in even flows.
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& Regards,
Praveen
Kumar
Mail id –
Praveen@viecapital.com
Mobile
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