NIFTY50 made a low at 11108.45 and start an advance since. This move could be wave „1“ of a larger uptrend, that can led N50 to new highs.
At the short term the move up is not a clear „five-up“ but the slope of the advance is one argument for this. The second leg up, started at 11137.45 on May 15 is countable as a „slit up“ wave, a series of „one`s „ and „two`s“. If so, the low at 11108 is the bottom of a possible wave „ii“ and we are at the early stages of a wave „iii“!
On the other hand, any decline below the 11108 will extend the decline throug the 0.618 Fibonacci of the wave „1-2“ at 11068 points. More potencial exist.
Todays a/d-Ratio was strong at 3.5, support the view of a new advance. By checking the broader NSE market data, you will observe that there is, in contrast to NIFTY50, an a/d-Ratio of 0.76, slightly negative. http://www.traderscockpit.com/?pageView=...
This divergence is to observe in the coming hours. The broader market has to move in unison either up or down to establish a trend.
If anything new develop, we will discuss it here.
Have a great week...
Feel free to ask or comment.
Trading this analyze is at your own risk!