Nifty has broken and closed below 10,400 to confirm that a short term top is in place. Let us analyse the fall to understand better on how things could pan out in the coming days to complete the correction. There could be multiple ways in which the correction could unfold but let us look at two possible outcomes.
1) In the first scenario Nifty is currently trading in wave 3 of A and is taking the form of 5-3-5-3-5 which could extend to around 10,250-220 region before giving a meaningful bounce in the form of wave B. I have used red lines to depict the possible path which Nifty could take in the coming days. The black box marked in the chart is an area where I assume an ir-regular abc caused the market to open higher today before falling sharply.
2) In the second scenario Nifty is trading in wave c of A and is taking the form of 3-3-5 which could extend to around 10,300-250 before bouncing in the form of wave b. I have used blue lines to chart the path which could take under this scenario.
Either way we could get lower levels in Nifty to complete the wave 2 correction.
Good Luck !!!!
1) In the first scenario Nifty is currently trading in wave 3 of A and is taking the form of 5-3-5-3-5 which could extend to around 10,250-220 region before giving a meaningful bounce in the form of wave B. I have used red lines to depict the possible path which Nifty could take in the coming days. The black box marked in the chart is an area where I assume an ir-regular abc caused the market to open higher today before falling sharply.
2) In the second scenario Nifty is trading in wave c of A and is taking the form of 3-3-5 which could extend to around 10,300-250 before bouncing in the form of wave b. I have used blue lines to chart the path which could take under this scenario.
Either way we could get lower levels in Nifty to complete the wave 2 correction.
Good Luck !!!!