Nifty Daily

LONG%	SHORT%
50%	50%

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	14980-15430	14467

Nifty close positive for the day, I will take that as a sign that the 3 wave correction is complete for wave II and wave III  up has started. The initial resistance will be at the 20 DMA near 14,980 followed by the upper Bollinger band at 15,430. Eventually, we should be heading towards 16,450 where wave III=I. Wave III should ideally end up being an extended move and go even higher.

The lower end of the parallel channel near the 50% retracement mark held out that the good support level, the gap zone below 14,469 also remains unfilled. The hourly momentum crossed over to the buy-side and we should continue towards the upper end of the channel near 15,100 filling the island gap that we left behind.

The swing turned up to make a higher high of 63 and resulted in giving us a positive divergence at the bottom. Next, we will look out for an overbought reading above 80 or 90 and eventually a negative divergence before the next meaningful highs made.

BANK NIFTY
TIME	TREND	Up Level	Down Level
Short term trend	Up	35846-37435	34257

The daily momentum for Bank nifty did not come back to the zero line yet. Even though we closed positive the closing price is lower than the opening price. This leaves open some near-term aberrations to occur where we can test 34,257 even though it may look like an a-b-c correction is complete. Be open however for wave III higher to start from your itself and head towards the upper Bollinger band near 37,435 surpassing the 20 DMA at 35,846.