Yesterday we expected the market to bottom out at around 10,125 levels but the market made a bottom at 10,095 and reversed.
There are multiple reasons to believe that the correction has ended.
1) The correction got completed at nearly 50% level of the move 9,687-10,490
2) The entire fall was a 5-3-5-X-5-3-5 (corrective wave- double zigzag) rather than a 5-3-5-3-5(impulse wave)
3) Nifty Bank never corrected in the same ratio as Nifty during the entire fall
4) US markets were very resilient and hardly fell 1.5% from ATH levels
The reversal looks pretty strong so assuming wave 2 low is in place at 10,095 let us analyse the market.
If we analyse the move from 10,095 - 10,232, we could see that 1st wave of the new impulse is taking shape. If Nifty doesn't break below 10,095 then we could be in for a very strong and powerful rally that could could take us to new ATH in the coming days/weeks.If the move 9,687-10,490 was wave 1,then the target areas for wave 3 could be around 11,400.
Good Luck!!!
There are multiple reasons to believe that the correction has ended.
1) The correction got completed at nearly 50% level of the move 9,687-10,490
2) The entire fall was a 5-3-5-X-5-3-5 (corrective wave- double zigzag) rather than a 5-3-5-3-5(impulse wave)
3) Nifty Bank never corrected in the same ratio as Nifty during the entire fall
4) US markets were very resilient and hardly fell 1.5% from ATH levels
The reversal looks pretty strong so assuming wave 2 low is in place at 10,095 let us analyse the market.
If we analyse the move from 10,095 - 10,232, we could see that 1st wave of the new impulse is taking shape. If Nifty doesn't break below 10,095 then we could be in for a very strong and powerful rally that could could take us to new ATH in the coming days/weeks.If the move 9,687-10,490 was wave 1,then the target areas for wave 3 could be around 11,400.
Good Luck!!!