Friday, September 5, 2014

Nifty loses its upward momentum but holds on to key averages...

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

Hour 9-rsi has almost completed the correction while the Day 9-rsi is in overbought zone with week showing a -ve divergence at the top in "macd chart"(confirmation by this/next week end).
Prices suggest of the minor (v)th unfolding from 8061 with two likely targets -8146, 8165.
And hence, one need to follow the prices with a trailing number(for the rise from 8061).
Prices could get resisted around 8109-21 at open, thus completing a 5 minor waves from 8061 to be followed by a correction; it is this correction which is crucial for the rest of the day for either making new highs or a possible break down.
Alternatively, prices could attempt to move closer to channel bottom/ 34 Hr sma to complete the hr correction around 8055 before reversing.
With the "Trend" intact, prices would continue their trending ways by holding 8067-79.
Bearish scenarios open up only below "8055".
We have tentatively labelled the sub-waves of the move from 7540.
The 5th wave may have started from 7422 or 7540.
Accordingly tentative targets could be (as per 1=5 with 1 as 5933-6777=844):
7422+844=8266  OR
If the sub-waves play out as per the tentative labels, the minor (v)th could reach closer to 8146-65.
Remember, these are tentative labels in shorter t/f which are highly fluid and we should adjust the labels as new price pattern emerges.