26 December 2016

NIFTY HEAD & SHOULDERS PATTERN

Hi Friends,

As mentioned in my previous post after breaking 8065 Nifty extended the Down Trend. Nifty is Forming a Head & Shoulders Pattern. This Pattern suggesting that the Current Down Trend may extend for another month or two and there may be another 5-10% Decline in Market.
NIFTY HNS
The Neckline of the HNS is at 7927 and previous Swing Low Support at 7916. Nifty may take Support near 7896 and Rebound. If Bulls manage to protect 7896 Nifty may Rebound to 8065, 8112. We can expect a Range-bound action in the last week of the year. Yearly close might be near 7972. Bulls will try to give a Yearly Doji Close.

As mentioned currently Nifty seems to be still in Corrective Mode in Wave (II).  Until Bulls take out Previous Swing High of 8275 Nifty would Remain in Down Trend. Bull Market will Resume above 8275, 8338. If Bears break the support at 7896 Nifty may Decline to 7678 or lower to 7489.

Currently we need to watch price action near 7896 and 8112 carefully to determine future course of action. As mentioned Nifty is in Wave (II). Investors need to stay aside and find Stock Specific Opportunities oven next 2 months to make Investment in Equities. Those who missed the Opportunity in Feb 2016 can surely look to Invest in next 2 months as the Market Bottoms Out.

Thanks & Regards,

Harsh Dixit.