Hello Readers!
Please find the analysis of Nifty in the images below!
That's all for the day! Stay tuned to my blog for more research on stocks, indices and commodities as and when I spot an opportunity worth writing about!
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Please find the analysis of Nifty in the images below!
Nifty 50 formed a Doji
pattern right at the 50% Fibonacci retracement level today. Could this be the
end of Wave B?
Note: Wave B
catches people in the wrong direction. It performs the task of enticing the
suckers to jump into the market. This is where bear or bull traps happen. As a
general rule, B Waves tend to show lower volume.
Analysis: I
believe Nifty 50 is showing the same traits of “eager participants jumping in
at small rallies”. A failure to close above 10900 will ensure correction and
beginning of Wave C. However, even if it does, the 61.8% golden ratio
resistance level stands waiting at 11,100 which is a very strong resistance
level and crossing that probably call for a new high in the index, which given
the market climate seems far-fetched.
 |
| Chart 1: Nifty (Daily) as on 30th Nov, 2018 |
There is eerie precision in today’s
closing price which exactly coincides with the 50% retracement of Wave A
The above is a 30-mins chart. Today’s
price movement shows uncertainty among the participants. Though the index
opened strong, it continued to fell throughout the day and only closed slightly
position thereby forming the doji we saw above. The RSI had dipped below the level of 60
today for a while. As many may point out, it indeed is a bit pre-mature to
conclusively point out that the rally is over for once but considering that oil
prices are expected to bounce back owing to the cut in oil production, I think
it is fair to look for evidences of weakness in the index too.
 | |
|
If Nifty 50 turns lower from this
level, or even from 11100 which is the 61.8% retracement of the initial fall,
more pain could follow in the unfolding of Wave C
 |
| Chart 3: Nifty (Daily) as on 30th Nov, 2018 |
That's all for the day! Stay tuned to my blog for more research on stocks, indices and commodities as and when I spot an opportunity worth writing about!
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