@Experts: 1 thing is certain, the faster is the rise, the faster is the fall & more sharper is the process. Nifty has been rising continuously inspite of bad results (SBIN, Infy, RIL, etc all big weights). Once this liquidity is over, then there will be the correction. Nifty target for the year is 6300. From 4538, we have already done ~1100 pts in just 7 weeks we have another 700 pts for the entire year. So imaging the correction & its period.
The present move consumed around 10 weeks which we may label as Wave A. Time wise suppose Wave B consumes 262% of A then the time will be around 26 weeks and this implies Wave C may consume 18 weeks which means the present structure will get completed around 44 weeks from today which come around Jan.2013. It means market likely to be range bound nearly for 6 months as Wave B. This is one of the possibilities. As market unfolds clear picture will emerge.
If my assumption is correct, market is making a Diametric correction since Wave A (2008 Top) consumed 14 months, Wave B consumed 21 months from 2009 Low to reach high of Nov2010 and Wave C consumed 14 months from top of Nov 2010 to Low of Dec. 2011. This fits into above explanation and at the same time as per Neowave theory one or two legs of Diametric can consume more or less time than the assumed time similarity. In our case Wave B consumed more time. So it leaves (Possibly)with one more leg to consume different time than 14 months. It implies,in a worst scenario, the current rally may complete faster and that much time will be compensated by E or G leg of Diametric by consuming more time. Please note lot of assumptions are made on some logic but as market evolves one need to fine tune it to arrive at a more logical structural formations and time relationship of such structure.
4 comments:
silence??!!!!
Ilango sir..As you said price broke out with vix also breaking out. I heard that this happens during the last phase of a rise. Is this true?
@Experts: 1 thing is certain, the faster is the rise, the faster is the fall & more sharper is the process. Nifty has been rising continuously inspite of bad results (SBIN, Infy, RIL, etc all big weights). Once this liquidity is over, then there will be the correction. Nifty target for the year is 6300. From 4538, we have already done ~1100 pts in just 7 weeks we have another 700 pts for the entire year. So imaging the correction & its period.
@Prbhat ji,
The present move consumed around 10 weeks which we may label as Wave A. Time wise suppose Wave B consumes 262% of A then the time will be around 26 weeks and this implies Wave C may consume 18 weeks which means the present structure will get completed around 44 weeks from today which come around Jan.2013. It means market likely to be range bound nearly for 6 months as Wave B. This is one of the possibilities. As market unfolds clear picture will emerge.
If my assumption is correct, market is making a Diametric correction since Wave A (2008 Top) consumed 14 months, Wave B consumed 21 months from 2009 Low to reach high of Nov2010 and Wave C consumed 14 months from top of Nov 2010 to Low of Dec. 2011. This fits into above explanation and at the same time as per Neowave theory one or two legs of Diametric can consume more or less time than the assumed time similarity. In our case Wave B consumed more time. So it leaves (Possibly)with one more leg to consume different time than 14 months. It implies,in a worst scenario, the current rally may complete faster and that much time will be compensated by E or G leg of Diametric by consuming more time. Please note lot of assumptions are made on some logic but as market evolves one need to fine tune it to arrive at a more logical structural formations and time relationship of such structure.
Post a Comment