Nifty has been around in a range since last 10 trading sessions but during that it has respected 200 day average perfectly around 17200 level. It has closed at or below 200 day average for 9 sessions out of last 10 . For a technical breakout , its a guideline that we should sustain for two consecutive days on closing basis above breakout level for a confirmation and that is why that one day could be considered as false breakout. Yesterdays closing has been again way below 200 day average and volumes on future were comparatively higher which opens the gate for more downside. Considering Elliot Wave, we are into corrective wave and it seems we have completed Wave B yesterday at 17399 . Now we are into Wave C which could be equal in length of Wave A and we might see 1270 points correction from 17399 i.e., to 16150. And if we analyze worst case then we can test downside trend line on channel which could be at 15900.
P.S. Stop loss for short trade is just 360 points away at 17468 while again is approximately 1000 points.
P.S. Stop loss for short trade is just 360 points away at 17468 while again is approximately 1000 points.
