The high made in Index in Jan 2010 did not get voilated, in fact from that point it raced down with market. This i would like to put in as wave 1. The subsequent upmove to Apr 2010 levels was wave 2.
As of now, i believe the broader market has topped out.
The above chart is major bearish, in fact suggesting formation of Primary wave B / wave 2 top, in Jan 2010 at 4500 level. Currently, the index is at 4256, a break below 4000, can take the index to 3500.
In fact under the current bearish preferred wave count, and we having completed wave 2 at 4449 (in blue font), we are in wave 3. The target of this wave would be takin 1.618x of wave 1 be 3621 level on this index. Below 4000, there shall be a cup and handle formation with distance to be covered been 500 points down from 4000, making it target zone of 3500. This is the broader index, and major correction shall creep in stocks.
A close look at the chart, wil give a rather clear picture:
The targets are posted on chart:
Bullish Case:
A move above 4500 shall be extremely bullish, pushing the index to 5000 levels. There shall be a cup and handle, and the currently labeled wave 2 shall be the lip of cup.
These studies are based on technical analysis and the author nor the webpage shall be responsible for the profits or losses. The author may or may not have personal holding. We are all students
4 comments:
Charts .. something confusing .. mistake maybe u posted old charts showing 4500 top levels ?
@muratt: this is NSE 500, in case u are thinking this is Nifty 50. This is NSE 500, an index of 500 shares listed on NSE. visit: http://www.nseindia.com/content/indices/ind_cnx500.htm for detailed index. This is not Nifty 50. And charts are as on date.
sir your article "NSE 500: A good case for Top.." is a best article......
sir are you providing nse stock tips for investor
@vm thanks for the appreciation. But, no i donot provide stock tips. All stuff is free :)
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