Hello Readers! Finally after a long break am back to my blog. Nifty has crossed 10000 mark in pretty short time and so the correction which has kicked off is gonna be more sharp and deep from current close of 9837. Lets have a look at the Nifty daily chart!

So if we mark our recent rally to 10137 it was into a perfect channel which was breached down simultaneously with a bearish H&S pattern giving a tgt of 9839 which was achieved in No time. But  does that mean correction is over??..No…. H&S tgt is not a sign of end ….So now when we turn on it other parameters, we are getting some sign of more bearishness in markets. If you look at 20 day SMA (Orange line), was acting as strong support until the day we breached neckline of H&S. Now 20 day SMA is acting as strong resistance which is around 9950. We did resisted last week exactly at the mark making average a valid resisted.

What’s next stop?… Calculating Waves, i feel we are in the last thrust of corrective wave, Wave C. Though it would be a complex structure formation but we might be heading to 9500 (+/-50) in coming weeks.  Indicators on Daily time frame are approaching oversold zone so be u might get some lumps of bulls on the way down but we shouldnt get fascinated until we are completely over 10000 mark again. So as a trader  i would square off all longs on index on any rise near to 9900 mark this week and try my hand on selling with sl of 10000 for next series with tgt at 9500.

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