Long Term View - Bearish to Neutral
Medium Term View - Bullish
Short Term View - Bullish
Weekly
Chart of Nifty -
Weekly Wide Chart of Nifty - From 1st week of March 2104 breakout from 6350, Nifty Rallied and topped out 9120 on 1st week of March 2015. Then, Downfall started and made low till now 6825 on 1st week of April 2016.
Price exactly
took Support from 200 moving average and retraced towards upwards.
The Fall
from 9120 top till now is properly Channelized which is the part of Correction.
Current Counter move of this downfall is bigger than the previous counter moves
and faster . But this Counter move
rallied with lower average volume create question in mind of its sustainability.
Hence, Curious to watch breach of 7980 and 8340 resistance. Breach of 8340 faster
will confirm the end of current downfall.
As per
Elliott wave theory, Complete downmove is complex correction with WXY (2
standard correction adjoined with X1).
We will continued to mark current countermove as X2 until the breach of
8340 (as that was the level confirms the downmove ends).
Also, RSI is
making the higher Swings whereas price couldn't breached its corresponding
price swings which indicate weakness and potential to established the Negative
reverse divergence. Price is to confirm the NRD.
As per
Candlesticks chart, last week closing is formed Doji Candle. Hence it is
important to watch follow weekly candle closing to confirm the further
trend. Doji considered as indecisive candle
but experience says that if Doji comes after good price movement, then it
indicates the maturity of the current trend and it may reversed in next 2-3
candle.
Hence it is
important to watch if any reversal sign on coming days. Beware!!! currently
there is no sign yet of reversal hence bullish trend will continue. i was just
talking about the probability of negative sign on coming days. Do Keep watch, if 7516 breached downside then
only it will confirm the end of current counter move of downfall.
Options
Pointers -
We will analyze
the next month contracts as only 4 days
are left for current expiry. We revisit the Option pointer progress till the
expiry.
Next Month
Contract Shows Option Range as 7500 - 8300 ( 800 Point Range), Currently having
Open Interest Range between 15 - 17 Lacs
which is too low.... There are 7000 & 8000 also having similar Open
interest . Need to observe the increase in Open Interest in each strike price than
only we get clear picture.
PCR ration
is 0.88
Max Pain
will be at 7700
