BANK NIFTY START OF DOWN SLIDE
1)it appears some correction is going to take place in bank nifty.
Recently bank nifty has recovered more than 61.8 percent (almost 78.6 percent) of the fall from
october high to february low.Of course in recent fall in june did not violate february low.
Is the bounce from june low to august high is a result of short covering due to bearish extreme senti ment?
that of course will be unfolded in coming days.fundamentals not have not changed.
central banks throughout world still in the process of tightening monetary policies.
This is opposite to what had happened in 2020 when centarl banks had offered lot of flexibility
in the system which had resulted in phenomenal rise in stock market.
Of course during this fall also Indian market have outperformed US and othermarkets.
Nifty had declined only 23.6 percent of its rise and bank nifty 38.6 percent only
Compared to thisDow had decloined 38.6 percent and Nasdaq around 50 percent.
So now we are now at the threshold,any thing deterioting economic parameter will not prevent the down slide and will not preveent central banks taking more hawish stands.
2) techincally we have perfect three wave rise from recent june low,it can be 1,2,3 or a,b,c(not going details of this)
after that we had declined for two days shown as a wave and after this we had rise in b wave which is moret than 78.6 percent of the rally
now monday with gap down may initiate the start of c wave normally the gaps formed in c wave or wave 3 generally not filled up immediately.I have shown tha channel this C wave has to break down below the channel to prove impulsive decline.Probable target c wave has been shown in the chart.
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Recently bank nifty has recovered more than 61.8 percent (almost 78.6 percent) of the fall from
october high to february low.Of course in recent fall in june did not violate february low.
Is the bounce from june low to august high is a result of short covering due to bearish extreme senti ment?
that of course will be unfolded in coming days.fundamentals not have not changed.
central banks throughout world still in the process of tightening monetary policies.
This is opposite to what had happened in 2020 when centarl banks had offered lot of flexibility
in the system which had resulted in phenomenal rise in stock market.
Of course during this fall also Indian market have outperformed US and othermarkets.
Nifty had declined only 23.6 percent of its rise and bank nifty 38.6 percent only
Compared to thisDow had decloined 38.6 percent and Nasdaq around 50 percent.
So now we are now at the threshold,any thing deterioting economic parameter will not prevent the down slide and will not preveent central banks taking more hawish stands.
2) techincally we have perfect three wave rise from recent june low,it can be 1,2,3 or a,b,c(not going details of this)
after that we had declined for two days shown as a wave and after this we had rise in b wave which is moret than 78.6 percent of the rally
now monday with gap down may initiate the start of c wave normally the gaps formed in c wave or wave 3 generally not filled up immediately.I have shown tha channel this C wave has to break down below the channel to prove impulsive decline.Probable target c wave has been shown in the chart.
Don'tforget to like this post.Follow me to get updates
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