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.
correction overdue :::: watch delhi activity ::: u will get answer :::: nifty tgt 14400 ::: ultimate ::::: decide youyself
Amique_UK
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The wait to know if 4 has completed continues. Although by channeling approach, it has not yet hit the lower band when we connect 1 and 3 and parallel with 2.
bijoy2526
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@Amique_UK, you are right. Different people follow different channeling methods. That is another subject. But as per your method you are right.