Every Day different types of Bad News - seems like Entire world market including Indian markets are not listening to it, kept moving up. But the real ticking bomb is major Blue chips around the world are showing some or to say it first time slow down. Example like Microsoft the IT Giant in US showed Negative Result after it came into Public. It shows that the victims are every where and all around the world. Standard Chartered is now on the lime light and facing trouble for its Iranian Transaction, earlier we know HSBC also in trouble.
In India Vodafone case is running with out an end. Many Indian Banks witnessing a raising in NPA and even may increase further - if drought get declared due to their larger exposure in Agri Loan. Liquidity also in trouble due to RBI's right control and uncontrollable Inflation & worst GDP Figures.
All these shows that the Storm is getting ready to blow, So every one should understand it and get yourself ready for it.
So what does Technical Says :-
It seems like Nifty forming a Flat Correction. As per theory - a 3-3-5 correction is in formation. If that is the Case - may be Nifty should move like as shown below
Pattern 1:-
Above pattern is a Flat Correction A-B-C - which means wave B wont move above Wave A top and the down fall for Wave C should touch the bottom of Wave A.
That means Nifty may touch 5032 for wave C.
Pattern 2 :-
In this pattern wave B should exceed top of Wave A and should fall for Wave C. In this Case Wave C should break the low of Wave A. Means Nifty may fall below 5032. Possible Target can be 4900 or even 4800 in worst case.
>>>Click the Chart to see it on Full Screen<<
Now lets try to understand whats here in Nifty. As shown on the above chart, Nifty today made a high of 5350, previous high is 5348. If we take this as similar to pattern 1, then a Fall for Wave C should start form here to touch 5032.
As I said Yesterday (Please refer yesterday Post in case you have not read that) Nifty should move near to 5378-80 level, in chart marked as Key Resistance in Green colored, then Nifty fall for Wave C could be aggressive - Possibly may break 5032 for a Target of 4800 or even 4900 in worst case.
So Interesting days ahead - Lets wait for it. Cheers
