may22 w2

May22-W2: Nifty to breathe? (May9 to May14)

What I said last week was that the trend remains bearish. I had been anticipating a good move on the downside since past 3 weeks. The last week finally gave that move.Now the following is my analysis for coming week based on what I am looking at 

I only know the very basics of wave theory but I believe I can see the 3 waves from 18100 level to 16375 level. This means that the market should ideally go for retracement. Since Friday has created a big gap between 16650 and 16484, I expect that the market will fill that gap this week. The market may continue to go up but I doubt it can go above the psychological level of 17,000

Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…

ScenarioAnticipated Price Action
ConsolidationBetween 16800 and 16125
DowntrendIf breach below 16125; to drop somewhere till 15650
UptrendIf breach above 16800; to rise somewhere till 17100

All these red candles are making Nifty too hot to handle. Coincidentally, heat wave is going on in northern India

DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.