Nifty had been volatile in the strict range since few months between 9700-10150 but in such course it was giving a perfect corrective Wave which was proved this week. In my last post we did study two cases where we expected either sharp downside or rally, and now our fortune is decided.
So now as you can notice in the chart, Nifty had two possibilities of going to either 9400 or 10700 which all depended on whether it is resisting near to 10060 or not! Yesterdays close above 10060 has given a fresh breakout on weekly charts and now we can be rest assured that we are positional inching to new limits for the skyline. Though the rally wont be easily as it was in the start of the year but with some hiccups on the way.
Technically speaking, lastly marked 9700 was an end to a corrective pattern and new Motive Wave has been initiated since then. So now technical support range for long trade would be in the range of 9700-9800 where 9860 could be a stop loss for all long trades as of now. Indicators are though overbought in weekly charts but have got enough correction in recent past to make a new strong move. Wave count makes a recent small tgt of 10700 with sl at 9860 on Nifty weekly chart. Stop loss at 9860 gets more relevance as its even 20 Weekly SMA which has acted as significant support since the start of this calendar year rally.
Strategy for Traders: Buy Nifty on each dip with tgts of 10700 and Stop loss 9860
Strategy for Investors: Park your liquidity in Pharma stocks and Pvt sector stocks for long term investment in next 2 weeks and wait for fruit to ripe in two years. For stock recommendation look out for our app!