NIFTY50 had risen this week to new ATH`s, in unison with other Major Indexes. This indicates a intact and widen bullmarked which may has start a wave (v) of III (circle) of 5 of Minor degree (weekly).
At the shown chart (180 min) you will observe the dotted blue trendchannel which indicate that the advance is not at the end and has shown a „throw-over“ by passing the upper boundary line of the purple dotted trendchannel. Shortterm we have higher targets ahead, may one more up-down sequence is needed to complete this move.
While the pattern shortterm is not quite clear we are still running either within a double 1-2 in a wave 3 advance, which get support by the increasing of traded Contracts by Option+ Future traders, which lift the up to 100K by each single day of the past 5!
A/D-Ratio was also strong (Friday at 4:1) and support the view to an extending impulsive wave. So one possible target for a wave (3) target is well above 11K where a wave (3) will finished and a sideways correction within a wave (4) is the next. Corrections within a wave 4 more often than not show a Flat or a Triangle. One target that I am still monitoring is at 11339 area.
So again, shortterm a pullback to the upper dotted purple trendchannel will be part of a wave 4 (may the coming week) correction on lesser degree, after completing a rise to new highs is the next move.
By obxerving NIFTY Bank (lower graph) you will notice that this Index shows the clearest wave structure and indicate even higher highs at forefront, here a possible target zone is at 27115-27309!
An modest rising VIX can be a first sign that the bulltrend is exhausting and much volatil days and weeks are just around the corner. Still yet there is no sign (to my view) for this behavior but be prepared for the unexpected and always keep an eye on that enormes helpful and importand Indicator.
Have a great weekend......
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSEIndia.com and moneycontrol.com!