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Seven months "Diametric" from 8110,
terminates at 16963 with absolute TOP at 17196
Indian markets kept aside all the
positive cues (Foreign and Domestic) of last couple of days and chose
to weaken more by paving the way to technical reversal. Weakness even
aggravated more on last Friday enabling market to even break the D-F
line on closing basis (see chart).
We have been saying that, of our Diametric structure, 'G' will be
similar in time and complexity with 'A' and eventually the same has
happened that 'G' remained equal to 'A 'consuming 22 days with
multi-wave formation.
Break of D-F line gives us first confirmation of Topping and reversal
of bigger ('B' in circle) while, breaking below 16494 will reconfirm
the same.
'G' of larger diametric, from 15358-17196-16963 unfolded as "Double
Combination" i.e. a-b-c + x + a-b-c-d-e. This pattern as per NEoWave
theory, retraces up to 80% and this gives us an estimate of first set
of decline to halt at around 15680 on SENSEX or 4640 on
NIFTY Cash.
What will be the larger picture post this rally will be evident with
the passage of time. For now, traders are advised to take up shorting
business in current scenario on intra-day bounce.
Supports for the day
are at 16606/16494/16400/16338/16255 and resistances are placed at
16720/16764/16805/16900.
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