Market Pulse

Published 01st November 2018

The Nifty is probably unfolding a countertrend bounce of minor degree. It is likely to last a few weeks. We remain with our 11k target for the rally. Eventually, it will not only be an opportunity to exit long exposure. It will also be an opportunity to ride the correction with short exposure.

The weakness of the past few weeks was broad-based across all major equity indices worldwide. Major indices worldwide broke their trends that formed back in 2009. Our conclusion that a topping process in risky assets worldwide is currently unfolding fetched even higher odds. Indian equities will be most likely affected by that.

The short-term direction is most likely up. We’ll let it unfold and see how far it gets. Last but not least, there is a non-negligible probability that the nifty snatches into a slightly higher high than in August. This would unfold as part of fun irregular flat structure, which is depicted in red. The best possible strategy to identify this is to wait and see how wave action unfolds around the black c-wave label. The irregular flat scenario would need to show increasing momentum around the 11,000-11,200 range.

The analysis above is a historical abstract of our Nifty 50 Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.