The correction that started from 10,490 is unfolding as discussed in my previous analysis. One important aspect we should consider is that we are trading in a 3rd wave and the corrections tend to be shallow as we have seen in numerous occasions since the move started from 7893 levels. In most cases the corrections were in the region of 23.6-38.2%. For the current move 9,687-10,490 the 23.6 and 38.2 fibo levels are at 10,300 and 10,183.We hit 10,300 yesterday and so now let us analyse the market keeping the above aspects in mind. There are 3 scenarios at the moment:
1) Nifty completed an abc correction at 10,285 and has resumed the uptrend. In this case Nifty doesn't break below 10,285 and goes on to hit new highs in the coming days. Blue line indicates this scenario assuming we have a bottom in place.
2) Nifty completed an abc correction which could be the A wave and is currently undergoing a B wave correction. Finding a top of B wave is a difficult task as it could be anywhere between 10,388 to a new high if the correction is an ir-regular correction.Red line indicates this scenario assuming wave B is a normal wave which starts the C wave at 61.8 fibo level.
3) Nifty is undergoing a wave 4 correction after which it makes one more low below 10,285 to complete the first leg or the wave A of the correction. This scenario is shown by the green line.
Please note that in all scenarios we are expecting this correction is either over or could be over by 10,183. Add on to your favorite stocks which has corrected reasonably from the highs anticipating new highs in Nifty over the coming days.
Good Luck !!!
1) Nifty completed an abc correction at 10,285 and has resumed the uptrend. In this case Nifty doesn't break below 10,285 and goes on to hit new highs in the coming days. Blue line indicates this scenario assuming we have a bottom in place.
2) Nifty completed an abc correction which could be the A wave and is currently undergoing a B wave correction. Finding a top of B wave is a difficult task as it could be anywhere between 10,388 to a new high if the correction is an ir-regular correction.Red line indicates this scenario assuming wave B is a normal wave which starts the C wave at 61.8 fibo level.
3) Nifty is undergoing a wave 4 correction after which it makes one more low below 10,285 to complete the first leg or the wave A of the correction. This scenario is shown by the green line.
Please note that in all scenarios we are expecting this correction is either over or could be over by 10,183. Add on to your favorite stocks which has corrected reasonably from the highs anticipating new highs in Nifty over the coming days.
Good Luck !!!