Nifty is very weak and seeing massive sell-offs. Broken most major supports. Lets see where we stand now.
First the weekly charts . The indicators are way oversold and so I don't expect too much selling now. Chart below:
See that THICK RED line . That line is exactly parallel to that THICK Orange line above which was acting as major resistance. The THICK PINK line was the lower support of the major channle that we broke some time back. The thick BLUE line is parrallel to that PINK line. I drew the BLUE line from a major PIVOT low.. SO the NIFTY stopped to day at the intersection of the 2 lines. We also see another DASHED orange line which is a major support. That actually comes around 4680-90 area. If that is broken , Nifty's next good support looks to be 3800.
On the daily chart we see that the parallel channel has been perfectly touched. But thats no guarantee it will not slide more.
Bigger chart shows that correction already reached 38.2% .
Looking at the shorter term chart, I tried to count the waves. It seems we have completed the (iii) and we are set for the (iv). According to this count , (iii) was exactly 423.6% of (i).SO according to this count , we go up to do the (iv) and than another wave down to (v).
I am not a fan of elliot waves but the fibo levels are playing well. If we bounce from this region I am not expecting more than 5000. But before that there is a chance we see one more sell-off to touch 4680.
Divergence are seen in some of the indicators . I just think its not time to be in markets.
First the weekly charts . The indicators are way oversold and so I don't expect too much selling now. Chart below:
On the daily chart we see that the parallel channel has been perfectly touched. But thats no guarantee it will not slide more.
Bigger chart shows that correction already reached 38.2% .
Looking at the shorter term chart, I tried to count the waves. It seems we have completed the (iii) and we are set for the (iv). According to this count , (iii) was exactly 423.6% of (i).SO according to this count , we go up to do the (iv) and than another wave down to (v).
I am not a fan of elliot waves but the fibo levels are playing well. If we bounce from this region I am not expecting more than 5000. But before that there is a chance we see one more sell-off to touch 4680.
Divergence are seen in some of the indicators . I just think its not time to be in markets.
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