As we are clearly seeing that previous down leg from 6229 to 5566 is in five wave clear structure on daily chart. So we can assume that this up move is in corrective format and it might be in a-b-c format. From wave perspective, as we are seeing prices reacted exactly from upper resistance level exact from 50%, it is difficult to say that wave b is over or is still ongoing. We have not confirm evidence that b wave as shown in chart near 5750 is completed or it will take few more days. But as per current chart structure it seems that one up move is due up to 6090 after that 6200 level.
Nifty recovered second time from 20 day moving average in last four days indicating 20 days moving average is providing good support in the market and it will provide direction for down side in very short term. Safe and less risky traders avoid positional trading. Do only intraday trading till nifty remain between 5905-5700. High volatility will hit stoploss on bothside in corrective wave.
In short, as long as 5700 is protected on closing basis our view over short term is positive with further confirmation above 5900 levels. For medium term we will maintain our target zone of 6100-6200 as long as 5700 protected on closing basis.
Lets see.
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