My laptop is still not rectified and hence I'm not able to produce the regular charts. Today I have attempted to post a chart from TradeTiger of Sharekhan. I'm not comfortable in placing labels using TT, hence no labels are present in the chart.
Yesterday's hourly movement is confined within the boundaries of a triangle. This could be the viewed in two ways.
1. Currently Nifty is forming the wave 'b' of the a-b-c down and the moves on friday & yesterday are the parts of triangle forming the wave 'b'. It has one final move of 'e' up may be pending and completion of which may break the triangle in the downside. This may target 5145.80 range.
2. Nifty is about to complete 1-2-3-4-5 of which the final 5th wave as completed yesterday as an ending diagonal. This has a potential of breaking upwards for a target discussed at the end of the post.
Although the positive divergence observed in the 9 RSI may support the second view, we should wait and watch the market development.
Hourly chart with 9 RSI:
Nifty 5 min chart with 9 RSI
If this is the end of 5th wave then the target for the ending diagonal breakout in the direction up could be in the range of 5346 to 5365. However it again depends on the time it takes to reach the target. If more time is taken then the target may be slightly higher as well.
Yesterday's hourly movement is confined within the boundaries of a triangle. This could be the viewed in two ways.
1. Currently Nifty is forming the wave 'b' of the a-b-c down and the moves on friday & yesterday are the parts of triangle forming the wave 'b'. It has one final move of 'e' up may be pending and completion of which may break the triangle in the downside. This may target 5145.80 range.
2. Nifty is about to complete 1-2-3-4-5 of which the final 5th wave as completed yesterday as an ending diagonal. This has a potential of breaking upwards for a target discussed at the end of the post.
Although the positive divergence observed in the 9 RSI may support the second view, we should wait and watch the market development.
Hourly chart with 9 RSI:
Nifty 5 min chart with 9 RSI
If this is the end of 5th wave then the target for the ending diagonal breakout in the direction up could be in the range of 5346 to 5365. However it again depends on the time it takes to reach the target. If more time is taken then the target may be slightly higher as well.
5145.80 discussed as the option 1 is also close to the 73.6% retracement of the up move from 5033 to 5448.80.
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