The Nifty 50 completed a 3-wave correction from its most recent all-time high. We expect another brief spike into the 12,200-12,400 area before the wheels come off.
Indian equities have lost steam recently. Their rally continuation occurred on diverging momentum. This observation hints towards a nearby fade. However, the upside pattern is most likely still incomplete at the time of this write-up. Another brief up sequence completes the c-wave of minute degree within an ending diagonal. Subsequently, the most significant correction since 2016 is likely to unfold. It will be the c-wave of an irregular flat pattern. The flat’s degree is unclear. It could be of an intermediate or primary degree. Whatever it is, it will result in another 20% leg down.
All in all, the Nifty 50 has probably one more spike to the upside left before the next big move to the downside commences.
Indian equities have lost steam recently. Their rally continuation occurred on diverging momentum. This observation hints towards a nearby fade. However, the upside pattern is most likely still incomplete at the time of this write-up. Another brief up sequence completes the c-wave of minute degree within an ending diagonal. Subsequently, the most significant correction since 2016 is likely to unfold. It will be the c-wave of an irregular flat pattern. The flat’s degree is unclear. It could be of an intermediate or primary degree. Whatever it is, it will result in another 20% leg down.
All in all, the Nifty 50 has probably one more spike to the upside left before the next big move to the downside commences.