Renuka - due for major correction

Tata Steel

Its breakdown, breakout counter ...pivot point is 515-525.....watch out :)

SHORT/LONG TERM VIEW

SHORT / LONG TERM VIEW

As we can see in the weekly chart ,Nifty retraced from the 52 week high by more than 61.8% viz 4828 making a low at 4766 .This looks like a part of corrective wave ,here Nifty might test 4974-5038 or maybe 5100 before start declining again .After testing these levels it might test recent low . No worries till 4700 is not breached , But the real problem will start only below 4538 which comes as the low of 4th major wave . below 4538 this wave will turn out into a major corrective wave of the total 0-5 pattern shown above threatening with targets such as 3500 or below.

Now if Nifty doesnt breach 4700 -4538 zone then we will be getting an opportunity to enter for fifth mega wave which has targets 5800-6300 and above .I would suggest to hold long term deliveries and keep trading in 4800-5100 zone .This is a short to long term view for a period of 3-9 months

Nifty Short Term View

5050-4970 range is major support as of now ...Two scenarios are likely

1) Nifty holds this support and bounces to reach 5150-5250 range .....5251 comes as the 61.8 % of wave march to 12 june which may be the intermediate of current rally and consolidate in a very small range for 1-3 months , above 5251 Nifty will start its fresh ride towards 6k mark . ...

2) If Nifty breaches 4970-5050 support range it can fall upto 4650-4500 ...around this level Nifty behavior will show us the way ...



so short / long term players watch out 4970-5050 and 5150-5250 levels

Cup With Handle

Cup with Handle pattern


Nifty looks like on verge of giving a major breakout ....I had explained all the possibilities in May itself when cup was formed on Nifty and also On CNXIT .....So wont go in pattern details again

Few points to notice :

1) CNXIT have already achieved 80 % of trgt price within 3 months which is 30 % of time frame and still goin on

2) Nifty looks like broken the flag pattern but have sustain convincingly (may be 2-3 weeks) above the support line which come around 4800 odd lvl

3) Target as explained on chart is around 6200 to 6700 in 6-9 months time frame

...... This looks impossible scenario for imagination so I posted CNXIT chart for confirmation and reliability of pattern


SO HOPE FOR NIFTY TO SUSTAIN ABOVE 4800 ....BEST OF LUCK

Nifty Expanding Triangle - Target 4057

wave A 4509-4092 = 417< wave B 4693-4092 = 601 < wave C 4693-3918 = 675 < wave D 4731- 3918 = 813 . This is a horizontal expanding triangle which will be completed with E wave completion , Now E wave does breach the AC trendline but the minimum target is 4057 which comes after some complex calculations , I have also tried to check the time frame of this E wave which comes as 23 days ie 31 st of Aug, This is also a complex calculation no need to specify here ( time frame can vary as it is only for study purpose ). E wave can be a very complex and voilent n may form a zigzag pattern

CNX IT Index

A perfect Cup with Handle breakout ....already 43% target achieved of cup length ..chart says all :)