The RSI fell below 30 for the first time while wave counts are extending in a C. Wave C has a minimum target of 4840 and an extended target of 4785. Once complete this wave C Nifty bounce would occur that might bring us out of oversold territory. 4976 previous Fridays high and 5030 are key resistance levels. The Nifty is now clearly below all the supports from the falling channel and falling wedge like pattern. At 5040 that high should be formidable in the short term. The 61.8% retracement at 4950 broke, 4785 was the 75% retracement that it tasted on friday and from there Nifty smartly recovered.
Now the question is where will nifty go from here. Two situation are creating here.
1:- it should jump smartly upto 5900 in three sub waves.
2:- It should fall up to 4200 level in two sub waves.
Currently nifty is in highly oversold zone on both daily and weekly charts. Watch carefully 4935 level on monday. for up move nifty must close above this level and closing above this level will give first confirmation for up move.After crossing 5030 level and closing above this level on weekly basis will give second strong confirmation for the target of 5900 in next two months. These all things will only happen when global market will support our market.
Dow jones has strong support at 12250, so key level to watch this 12250 for dow. If we move below 12250 on DOW we may see fall up to 11800-11500. In that situation our market will not act in different waves and we may fall up to 4500 again after failing 4935 level on nifty.
Therefor 12250 for DOW level will be trend decider level for all market.
80% chances ---------------------------5900 in next two months
20% chances ---------------------------4200 in next three months
1:- it should jump smartly upto 5900 in three sub waves.
2:- It should fall up to 4200 level in two sub waves.
Currently nifty is in highly oversold zone on both daily and weekly charts. Watch carefully 4935 level on monday. for up move nifty must close above this level and closing above this level will give first confirmation for up move.After crossing 5030 level and closing above this level on weekly basis will give second strong confirmation for the target of 5900 in next two months. These all things will only happen when global market will support our market.
Dow jones has strong support at 12250, so key level to watch this 12250 for dow. If we move below 12250 on DOW we may see fall up to 11800-11500. In that situation our market will not act in different waves and we may fall up to 4500 again after failing 4935 level on nifty.
Therefor 12250 for DOW level will be trend decider level for all market.
80% chances ---------------------------5900 in next two months
20% chances ---------------------------4200 in next three months
