Nifty gaped up at the opening and reached the resistance zone near 5645-55 and turned down. Yesterday's high might have completed the wave 3 of 3. Current down move is part of the wave 4 of 3. As discussed yesterday, this move might reach the 38.2% retracement level near 5548 - 5560 range.
Yesterday's movement appeared like a zig-zag with waves a & b are completed and wave c is in the progress. This may reach the channel bottom as shown in the hourly chart. As being the 4th wave it may briefly overshoot the channel bottom as well.
Daily chart with Elliott Wave labeling:
Hourly chart with Elliott Wave labeling:
Daily chart with 9 RSI:
Hourly chart with 9 RSI and 35 D:
Yesterday's movement appeared like a zig-zag with waves a & b are completed and wave c is in the progress. This may reach the channel bottom as shown in the hourly chart. As being the 4th wave it may briefly overshoot the channel bottom as well.
Daily chart with Elliott Wave labeling:
Hourly chart with Elliott Wave labeling:
Daily chart with 9 RSI:
Hourly chart with 9 RSI and 35 D:
Sir,
ReplyDeleteI am holding 5500 PE but market is not going down. Should I buy 5800 CE for target 55-60 in 3-5 days or buy 6000 CE for Oct for target 150+. I made loss by selling 5500 CE at give away price which is now above 150. I wish I had hold 5500 CE that day, I would have made 20k or more easily.. Now I have almost nothing so want to cover this recent loss of 20k asap. Please advise what to do? Thanks.
Market may go down to around 5560 range. That may be help you to recover some of your premium from 5500 PE. But keep in mind you need to have patience.
DeleteMarket have to move up after that. But to what extent and by when is not predictable accurately. Can it happen before the expiry of September series or will it happen in October... I do not have an answer to it.
One need to be very cautious while trading in options as they have the potential to wipe out the entire capital.
But remember, market will surely reward the one with patience and a trading plan. The one who sticks to his plan without getting carried away by the emotions during the trading hours.
Sir,
ReplyDeleteAll analyst and people are saying that Nifty will see 5800 or even 6000+ in 2-3 months. Shud I buy some low priced CE for Oct or Nov that can give 10-12 times. Can I buy 6000 CE for Oct? Or buy 5800 CE Sep? Pls advise.. Nifty went slightly down but my PE did not move and now Nifty is above 5600 again... Pls advise...