Following observations I noticed by closely watching the structure of nifty .
First time after many days It is detached from 20 dma
In last 15 trading days we had only two green candles rest were red candles.
After so many days stochiastic is dipping in to oversold condition.
If stochiastic cross over takes place in oversold condition we can have nice divergence between price and oscillator.
main question here 4 th has already ended or not and 5 th wave has already started or not
as after one day green candle we have not got subsequent green candles.
4 th normally corrects 23.6 percent or 38.6 percent of 3 rd wave.
It has already corrected 23.6 percent of wave 3 but here we can not say forcibly that it won't correct 38.6 percent
as it is not showing follow up buying after one day of green candle.
It must close above 20 dma which is at 18063 to prove its strength.
Atleast it should regain 17990 to 18020 zone on closing basis.
Trading with naked put or call option appears to be little risky
I don't expect sideways or consolidation in nifty .
I feel market it self will tell in which direction to trade.
First time after many days It is detached from 20 dma
In last 15 trading days we had only two green candles rest were red candles.
After so many days stochiastic is dipping in to oversold condition.
If stochiastic cross over takes place in oversold condition we can have nice divergence between price and oscillator.
main question here 4 th has already ended or not and 5 th wave has already started or not
as after one day green candle we have not got subsequent green candles.
4 th normally corrects 23.6 percent or 38.6 percent of 3 rd wave.
It has already corrected 23.6 percent of wave 3 but here we can not say forcibly that it won't correct 38.6 percent
as it is not showing follow up buying after one day of green candle.
It must close above 20 dma which is at 18063 to prove its strength.
Atleast it should regain 17990 to 18020 zone on closing basis.
Trading with naked put or call option appears to be little risky
I don't expect sideways or consolidation in nifty .
I feel market it self will tell in which direction to trade.
