some have mailed me saying a possible head and shoulders topping pattern.
i dont think that it exists here .
index has been in a corrective mode and so has done exactly that. it had to come into this zone which it has done.
still the stocks look weaker than usual which may is an indication of prolonged sideways action if not more correction.
so it is quite possible that month and settlement remains subdues and sideways till the the time averages catch up and stocks can form a base .
the day of next major panic should be a short term buying oppurtunity.
Hi Vipul: Saw ur comment. Too bad the reuters cut n paste is bad
ReplyDeleteOn Nifty I agree that looks like we may base between 5800-5900..
On the overall rally what are the chances that the rise from Mar 09 in Nifty is impulsive??
Regards
KRG:
ReplyDeletecurrently it is better to view the rise from the 08 lows as corrective.
however impulsive structures are largely identifiable on relative basis on longer term charts, so more time and price action needs to be seen to concretely say what is what. for eg monthly charts , the rise can be viewed as impulsive till date from the lows.
it is also important to explain the position of sensex since start to label impulsions.
my count right now is to label the rise in sensex since long as corrective rises and the current corrective move going long on will lead to a large impulsive rally.
which means that the rally is going to get bigger and better in some time to come! difficult to imagine that!
{alternatively sensex has begun its impulsive rise.}