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Nifty Daily

24 Aug 2020 ‚óŹ 11:54 AM

LONG%

SHORT%

75%

25%

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 11500 11220

Nifty is clearly signalling the start of wave v of 3 upwards which is capable of going beyond the 12,000 Mark. The confusion on how wave iv would develop is probably over because it can't be a triangle forming anymore. It probably ended as a running flat on 17 August. Today's price action to a new recovery high managed to push the daily momentum back into buy mode for the nth time since May 2020. From the low of 8806 we are in 1/3 wave rally that is now in the final lap. 5th waves can be misleading in their expectations because they sometimes truncate. Within a 3rd wave howeve it is normal to see  i=iii=v, if that turns out to be to we will end up at 13,000. For the very short-term however we can focus on 11,800 near the weekly Bollinger band first. Is banks joined the race expect rotation where MidCap slowdown and financials another large caps pick up again.

Nifty is trading above the trendline of the 1st 2 highs and attempting to fill the gap between 11,433 and 11,536 left behind on 28 February 2020. The gap was at therefore an important break away gap on the way down that kicked off the March crash. Filling this gap would be an important recovery signal where bulls have captured the boundary darwn by bears back then. Prices have broken out above the trendline of the last 2 highs at 11,426 and we can draw a rising channel that goes all the way up to 11,650.

The swing went up by only one point to 57.

  BANK NIFTY        
 TIME TREND  Up Level   Down Level
 Short term trend Up  23211-25670  21924

On Friday I noted that bank nifty was signalling that it was ready to move and it did. So clearly the financials are now carrying the weight of the next market move. The index itself started wave 3 up and should go far above the wave 1 high of 23211. 3=1 goes as far as 28500. The first hurdle should be the gap left behind above 25670. The 20dma is at 21924 as the trailing level for the move.

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