NIFTY50 bounced today in a countertrend move to 10740.80, near yesterdays cited range (10751-10813)!
This move is not complete and is a wave ((a)) with a decline following to a wave ((b)) @ 10658.80. Next to occur is a wave (c) of ((2))! As before, a comfortable range would be around 10770.80 – 10810.66, where price will met a wave 4 of lesser degree and is near the 0.618 Fibonacci of the decline from 10923.60 – 10628.80! NIFTY VIX is trading sideways at 16.04 level. Todays a/d-Ratio was strong at 1.94, TRIN was at 1.89 yesterday, indicating oversold market conditions.
Trading below 10628,80 will open the door to 10534. Much more potencial exist; while trading above 108895.35 will decrease the odds for a setup.
NIFTY50 and SENSEX closed the week with a „bearish Engulfing“, a reversal candle, which implies more declining prices ahead as long as the level of 36285 (SENSEX) and 10923.60 ( NIFTY ) is not touched! So we will monitor this behavior closely.
That`s it for now.
Have a great weekend....
Feel free to ask or comment.
Trading this analyze is at your own risk!