Indices
Thursday, September 19, 2013
INDICES:PUZZLE STILL UN RESOLVED:
It closed above medium term reversal levels of mine today at the end of trading session.
At present 2-3 alternatives are going on in my mind from wave count perspectives about medium term trend of the market as below. First 2 are stating we are still in bear market & this rally is still corrective rally part of it & last one stating we have begin bull market & ended Time wise bear market at recent lows
1. If it’s expanding triangle as per chart attached then we will go till 21200 levels on sensex & 6230/6350 levels in nifty & it will be final leg UP towards all time high levels & then we are going to see further lower levels as written earlier on down side.
2. If its zig-zag in last leg of wave-Z as per chart attached then it will further split up in to 3 waves (abc) & that can go till Upper end of channel after doing retracement of recent move for the higher levels targets of 21500-21700 on sensex & 6500-6600 levels on nifty & it’s a part of bear market rally only & we are going to see further lower levels as written earlier on down side. But it will be further time consuming.
3. If we completed running flat correction in the form of WXY (wave-II) at recent lows as mentioned above & recent rise is impulsive then its new beginning of Bull market.
Out of 3 alternates as mentioned above which is going to play out is not still conclusive at current levels of market. Although my preferred one is from first 2, because this rally time wise is too fast & still there is inter market divergence is intact.
But I neither want to keep any kind of Bias nor want to do preemption in hurry to reach final conclusion, because this 2 things are the most dangerous from trading perspective, if it’s against momentum.
Short to medium term momentum indicators of the market is still positive. Therefore, let see market behavior in coming sessions to take final call on it.