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Sunday, July 22, 2012

Nifty July 23 to 27, the Technical Picture


Nifty reversed upwards from 5169, traveled up to  5258 and turned down to close the week at 5205.Since the entire impulse move from 4770 is getting reversed, from 5348, this correction could consume time.1 of C had consumed 25 trading days and 2 of C ( Unfolding as a, b and c)  has taken 9 days so far.Till the month end we have another 7 more trading days to go, all together totaling 16 trading days,Time wise July 31, looks like a reversal.
Price wise, a 50 % correction of rise from 4770 could bring the Nifty to about 5000+
Meanwhile in the corrective waves, what we thought of as b, actually seems to be the second leg of a. This means the move from 5258 to 5205 is an ongoing downward move which could find support this week at 5127, before the corrective B starts.
Astrologically July 31/ August 01 seem to be reversal dates.Of course we wait for the price action to guide and then we take appropriate positions with tight stop losses. When Mercury is retrograde, it is better to be careful.




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