Nifty is consolidating for the last two days after the explosive move which took Nifty to 10,343 from 10,095. If we analyse carefully the move between 10,261-10,358 can be interpreted in two possible ways.
Scenario 1 - Under this scenario Nifty has completed waves 1-4 from the low of 10,261. Nifty should move higher without violating 10,309 which is the top of wave 1 and the minimum targets on the upside could be 10,363-10,374.Green line shows the path Nifty could take in coming days.
Scenario 2 - Under this scenario Nifty is undergoing an ir-regular ABC. 10,343-10,261 is wave A, 10,261-10,358 is wave B and we are currently in wave C. If Nifty is indeed forming ir-regular ABC then we could revisit 10,260 levels again before resuming the uptrend. Red lines shows the path which Nifty could take in coming days.
In both cases Nifty is expected to go higher and only a sustained break below 10,248 will put this rally in jeopardy.
Good Luck Traders!!!
Scenario 1 - Under this scenario Nifty has completed waves 1-4 from the low of 10,261. Nifty should move higher without violating 10,309 which is the top of wave 1 and the minimum targets on the upside could be 10,363-10,374.Green line shows the path Nifty could take in coming days.
Scenario 2 - Under this scenario Nifty is undergoing an ir-regular ABC. 10,343-10,261 is wave A, 10,261-10,358 is wave B and we are currently in wave C. If Nifty is indeed forming ir-regular ABC then we could revisit 10,260 levels again before resuming the uptrend. Red lines shows the path which Nifty could take in coming days.
In both cases Nifty is expected to go higher and only a sustained break below 10,248 will put this rally in jeopardy.
Good Luck Traders!!!