Nifty Today’s Trend, Prediction, View, Target 17th Oct
Nifty Futures today continued moving higher along predicted lines and perfectly in line with our view. Nifty had a minor resistance around the 10600 spot Nifty level area which was tested today and we did see a minor intraday pullback from that area but the important point to note and the theme that we have been seeing for the past one week is that though there have been intraday pullbacks those pullbacks have been bought into and Nifty Futures has managed to close around the high point of the trading day. Even today the same theme was seen though Nifty intraday did go lower once again it managed to move higher and closed higher than the days open zone.
Now let us look at the overall sentiment analysis although Nifty and Bank Nifty have bounced back from the low points made last week the general trader sentiment remains very negative. Generally speaking all the traders are bearish rather very bearish and everyone is just talking about retracement targets of 0.382 or 50% retracement of the fall of 11760-10138 levels at best. Most traders are not expecting Nifty Futures to bounce above 0.382 retracement target which is 11760-10138= 619 so 10138+619=10757 most traders are not expecting this current move to go beyond the 10757 there are some traders who feel that even this level will not be tested regardless of where Nifty Futures and Bank Nifty goes in the near term the point I am trying to communicate is that I do not see any trader who is currently bullish every person on the street is holding shorts or is short selling on rise with the assumption that Nifty will not move much beyond the 0.382 retracement target or in other words most of the street is not expecting any targets above 10750-10800 but we have always seen that whenever the sentiment is totally on one side markets generally move in the opposite direction so be careful on that.
As per our trend analysis, Prediction, View we see that the sharp fall from 11760 was in the form of a-b-c-x-a-b-c also we have visual confirmation that the fall was exceptionally steep and as per ellot wave and neo wave principles that whenever the fall is exceptionally steep it is a wave a of a correction and it is also a part of a —- so since it is a part of a —– the next wave will retrace a minimum of –% so if we extrapolate that we know that Nifty will test the level of —– and till now Nifty is doing and moving perfectly in line with all the same wave rules and time cycle is also being honored so be very careful in what trade you are taking the quantum of the pullback or retracement targets could surprise many traders.
Rupee continued to move exactly as predicted and in line with our view and as per our analysis we are of the view that rupee is now heading towards targets of 71-72. The same goes with crude oil we had clearly predicted when crude oil was at 86 dollars few days back and we had clearly mentioned in our update and view that near term crude oil has hit its upper target and now we see lower side retracement targets are on the cards and the effect of appreciating rupee and lower crude oil price will act a tail wind for Indian equities in the near term.
Good Trading To You!