November 9, 2013

It was very volatile week. And, NIFTY could not scale "up" as expected. Now, this coming week is crucial for the index. I say crucial because Two entirely opposite competing views are being configured and next week would be the deciding week for the market.

First configuration & projection:
C1 was from 5700.95 to 6252.45 and C2 was an irregular flat "abc" ended last friday at 6121. So, C3 could be projected to a minimum of 100% of C1 i.e. 6672.50. 

Second configuration & projection:
C1 was from 5825.85 to 6218.95, C2 at 6079.20, C3 at 6332.60 (or the invisible 6351 Diwali High) and C4 ended last friday at 6121. C5 is going to unfold in the coming week. As per this configuration, C5 cannot be larger than C3 and mostly about 61.8% of C3. In that case it would be failure wave and the follow up could be ground 0 (5118.85).

Suggestion:
We can positively look at the first configuration, C3 is always violent in nature. So, expect it to break the previous top in a couple of days. If not, then it would be a good idea to be cautious and book profits.


[charts are daily and taken from google.com/finance]