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Nifty Daily

2 Jul 2020 ‚óŹ 02:17 PM





Position Sizing model - Long % = percentage of indicators bullish v/s Short % = number of indicators bearish, Including both daily and weekly time frames.

 TIME TREND Up Level   Down Level
 Short term trend  Up 10671-11200 10182

Nifty closed exactly at the 61.8% level and is in minor wave v of the next impulse. The only question is, is this wave 3 of 3, or wave 5 of a leading diagonal. Failure to get past 10,671 would favor a leading diagonal, however sustaining above it should mean that a 3rd wave has started as I have been anticipating for a while. Implications of a 3rd wave are that 3=1=11200. Since the vth of any wave is deceptive, we will only have to trail this move till it is complete before we know what it is. The daily momentum once again crossed back to the buy side, however we have seen recently that it is going both ways and the 20 day average is holding out better on the entire move. The way prices are interacting with the averages without deep corrections it does look like this is the 3rd wave and is likely to extend much higher, and that is the preferred scenario. 


Prices are making higher highs and higher lows on hourly charts and 10,491 is the most immediate swing low that should hold. Above today's high of 10,598 we should continue to extend towards the top end of the broader channel that is now coming closer to 11,000.


The swing continued to rise toward 62 as more stocks attempted to move higher, but the MidCap indices were lagging behind the nifty for the day.


  BANK NIFTY        
 TIME TREND  Up Level   Down Level
 Short term trend  Up 24800   21154

Bank nifty did not show the same enthusiasm as nifty and the daily momentum remains in sell mode. Prices did not go above the high of June 20 2479. The key support at the 20 DMA near 21,154 will need to be watched on price reactions. Once they start making higher highs then the trend up should continue.


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