21 Jan 2021 ● 04:26 PM
Position Sizing model - Long % = percentage of indicators bullish v/s Short % = number of indicators bearish, Including both daily and weekly time frames.
Nifty close down giving up in the later part of the day. It is not clear whether the 2day rally was impulsive a corrective in nature so we believe it open to interpretation. The wave count on the chart would suggest that the debt was just part of the next rally which is wave v of iii of 3. If it is still part of the previous iv th wave then a retest of 14,260 would occur.
To confirm watch the 20-hour average at 14631 as we did not close below it at 3.30pm today. So the reading may still be bullish.
The price decline today remains broadly inside the channel from the December bottom which has its lower end and support at 14,424 and the top end at 15,160
The swing came back to 20 just on the edge of the oversold zone.
Bank nifty completed a 66% retracement of the two-day rally intraday. As long as we remain above the 20 DMA at 31,790 on a closing basis consider that minor wave iii is continuing upwards.