Nifty to sink after the confirmation

On 30th October 2015 Nifty broke the level of 8100 on closing basis which opens negative possibilities. In the previous update "Nifty on the brink to reverse", the level of 8200 followed by 8100 was crucial to give a confirmation on downside. As the index has reversed, the possibility for the prices to sink further is likely.

As per wave theory, after completing expanding triangle pattern, prices moved sharply lower which is termed as the 'thrust' post triangle pattern, The downside is corrective in nature which can be plotted as a-b-c-x-a-b-c. This entire double correction can be one bigger correction as well. The larger formation will only be obtained as time passes by.

In short, Nifty to move lower near till 7500 levels as the important supports are taken out. The downside target will only negate if prices move above 8300 levels.

Nifty 60 mins chart

Disclaimer: Please do not circulate this report to Clients and others. The motive for this short term update was to make aware of various patterns and its implications and how it can be used for forecasting various asset classes. Do not trade on this update or take any positions based on the above mentioned view