10 November 2016

NIFTY - PANIC BOTTOM IN PLACE?

Hi Friends,

As mentioned in my previous post after breakdown below 8500 it's time to revise Analysis on Nifty and look for alternate Wave Count. Nifty formed a Head & Shoulders Pattern and broke below 8500 in last week. Bulls tried to protect 8500 however failed to do so. Nifty broke below 8500 as a result of worries over the Outcome of US Presidential Election and sudden decision by PMO to cancel Rs. 500 & Rs. 1000 Currency Notes. It was a sudden reaction and was Unexpected to many including me. Though the H&S breakdown suggested decline to 8100 sudden Crash to 8100 was unexpected.
NIFTY
As mentioned earlier it's time to change the Wave Count. Nifty seem to have completed it's Motive Wave (I) on larger degree at 8968 as depicted in the Fresh Wave Count in above Chart. Post the H&S breakdown Nifty has already achieved the Pattern Target. Nifty retraced 38.2% and closed above the support zone. After this sudden reaction and decline to 8002 Nifty recovered from the lows and close above 8400. Nifty tested the previous breakout and a Psychological Support at 8000 and bounced back sharply. This could be the indication of Panic Bottom in Place. 

Currently Nifty seems to have completed Correction in Wave (II) at 8002 and started a Rise in Fresh Motive Wave Up which is still to be confirmed. Currently Bulls need to break above 8550 and 8670 Resistance to confirm the start of Fresh Bull Run. If Bulls manage to take out 8550-8670 and sustain above it on weekly closing basis Nifty may rise in Wave (III) to 10500, 11500 or Higher in next 8 to 12 months.

Currently we need to watch price action near 8550 and 8670 carefully to determine future course of action. Here comes the Opportunity to make additional Investment in Equities. Those who missed the Opportunity in Feb 2016 can surely look to Invest now.


Thanks & Regards,

Harsh Dixit.