Published 7th October 2019
The rebound from the late August low is probably a second wave bounce. It counts best as an asymmetric double zig-zag. The pattern is most likely complete and reversed very close to the overhead resistance within the 11,700-11,800 S/R cluster. Last week’s progress to the downside counts best as a bearish impulse. It forms most likely minuette wave (i) of minute wave iii(circle)
Meanwhile, the macro situation turns increasingly sour. The global weakness became visible in India as the economy shows signs of a slowdown. Global risky assets approach significant supports and any breakdown will probably spill over to other markets. Indian equities are likely to get dragged along to the downside.
All in all, we remain with our outlook that the current drop will most likely target the Autumn 2018 lows.
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.