Thursday, August 14, 2014
The corrective fall from 7841 to 7540 showed a distinct 3-wave fall.
The fall from 7752 to 7540 was labelled with 5 sub-waves.
We, hence, looked for a retrace upto 7664-75, above which market could rally anywhere and it broke past the resisting trendline, again at 7675.
The reliable 9-Day rsi suggested of a reversal from its critical support which now depends on prices holding above 7631-40(50dsma) in the coming days. There is also a fast rise set up developing between 5 & 50 dsma.
Strength has returned with prices closing above 50 dsma @ 7631-40 and would continue staying above 7700, 2-Hour Low.
Minor resistances are in the region of 7762-76, above which 7799-7809.
(Last rise retrace considered from 7699 after Nifty makes a newer high above 7757)