Showing posts from May, 2019

Nifty at one higher degree and forecasting through Neo wave

Nifty Daily Chart Last week I had written an article on Nifty that the selling will intensify ahead of election results. Nifty did made a new low and continued the downtrend. However, in the last two days of the week Nifty closed above 11400 levels. This article on Nifty will concentrate on one higher degree which moreover looks like a sideways pattern. The rage of this pattern is is of 11600 and 11100 on the downside. So it is better to go with an option strategy more likely of a Straddle, which is to buy call and put of same strike price and expiry.                                               Call           ATM             Put                                                 1096           11400            58 A bearish crossover is seen in Nifty. An impulse fall is still intact with wave iv on the brink to complete and wave v to start anytime soon. Also the bigger wave looks to be a bow and tie diametric in which last leg of diametric is ongoing. In this case wa

Nifty: Selling to intensify ahead of the election results.

Nifty Daily Chart Nifty has outperformed many  Asian markets from the start of 2019. There can be many reasons like elections, IIP and CPI data. However last week market witnessed heavy selling which was accompanied by FII selling as well.  Technically speaking, markets which were moving in a higher highs and higher lows have discontinued this formation. Prices are also trading below both the short term moving averages i.e 20 EMA (red) and 50 SMA (blue) but there is no bearish crossover yet. All this indicates that market is in bear mode and can slip further. From Wave perspective, prices progressed in a three wave formation which was corrective in nature (W-X-Y) In wave Y there was a extracting triangle marked as (a-b-c-d-e). The current fall looks to be an impulse and can move down till 11100 levels where the support of the trendline is placed. It is likely that this trend line will be broken. As of now the index is moving in wave iii. It is not difficult to predict