Elliott wave theory: A dull close on weekly chart may be
first hint of tired market. Well, tired market should be named as beginning of
correction. Still, I believe that 8180 may be the top for some time. Either it needs
to jump above 8180 quickly or it can close below 8000 level to name as short
term top.
Market cycle: It was marginal only but fifth week
turn negative with a confirmation of market cycle. If this goes right then we
must watch for support at 8050. If it gives close below 8050 anytime then we
can see a possible correction. For upside, chances look limited but it will be
bullish for target of 8250 as long as it is above 8050. Complex week ahead for
Nifty.
Technical indicators: MACD and RSI are growing with
negative divergence. This is alarming. This is prime reason that I am advising
strong caution.
Charting pattern: I always listen this factor and try
to gives higher weightage as its only and only price which pays in market.
Charts are saying that as long we are above 7860-8000, we are bound to see
higher levels. Above 8180, it can see levels of 8240 before forming any final
top.
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