Nifty Daily

LONG%	SHORT%
92%	8%

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

NIFTY
TIME	TREND	Up Level	Down Level
Short term trend	Up	11140	10437

For the 6th consecutive day nifty is close in the same trading range. It is possible that the index itself does not see a deeper correction due to rotation between stocks and sectors. The corrective structure on early charts for the last few days looks like a diamond pattern, a type of triangle, and triangle is typically seen in forth waves. Accordingly the wave count has been changed. We should be due to start minor wave v of iii heading towards 11,200. The 20 DMA at 10,437 is the trailing support for the move. The momentum indicator has been whipsawing both ways and may be less reliable. This is looking like an extended 3rd wave and we may get more subdivisions and change the markings as we go along. 

I moving away from the vegging structure till new evidence shows up as prices have not reacted like they should from such a pattern. Prices are in fact held the rising trendline from the June bottom of 9544. This allows us to draw 2 parallel lines to each of the previous highs. The 1st 1 will come in at 11,140 is the initial resistance and the 2nd 1 will be much higher at 11,385. The lower trendline support that 10,770.

The swing moved slightly higher to 33.

BANK NIFTY
TIME	TREND	Up Level	Down Level
Short term trend	Down	23100	21730-20926

Bank nifty broke its wedge structure yesterday and we saw follow up selling today. The hourly chart shows an a-b-c decline which has a move on the downside. It may either complete at the 20 day average near 21,730 or extend lower towards 20,926 near the wave D low or the 38.2% retracement of the entire rise. What we have then is the short-term divergence between nifty and bank nifty that may continue for another day or two. After that the move higher may resume.