This post is coming after the earlier post on NSE Nifty on (26/01/2020). As expected a correction started soon afterwards. The index broke the lower trend line of the parallel channel, signifying that the whole 5 waves up move from 2009 bottom, may have completed as shown on the chart below. This may mean that the index is currently in correction mode, till a bullish scenario arises.
The following daily chart shows the move of NSE Nifty from March 2020 bottom in more detail.
The chart is showing that the index may be completing wave C of A-B-C corrective up move and may be forming a rising wedge pattern. If correct, there is a likelihood of resumption of downward trend. However
if index decisively breaks the rising wedge pattern to the upside, that
would open up the bullish possibility. The downward red lines with arrows
are just depicting the direction and not actual target. In the rare case it is possible that the index breaks the low it formed in March 2020. But it's too early to say that.
