Is the Nifty Correction Done ??

CLOSING CHARTS :

 
EARLIER :

Nifty has reached a crucial point, closer to our target area of 8100 projected in our earlier post  below, touching a low of 8149 intra day today.

http://eqtrend.blogspot.com/2015/04/nifty-pre-may-mayhm.html
http://eqtrend.blogspot.com/2015/04/nifty-update-abc-correction.html

The hourly TO is in the following chart is showing initial signs of reversal as the hourly TO crosses above the daily TO, even though  price continues to make newer lows. The price action in the next couple of hours will confirm if the reversal is for real or just another fake divergence. In any case the risk reward is strongly skewed against the shorts at the moment and bears will do well to cover their shorts and book profit for the time being.

A look at the daily chart below shows that the trigger line is about to crossover the zero indicating that the downtrend may reverse in near future.

CNX IT Chart Update

CNX IT : Daily - Support Zone

CNX IT Weekly : Oversold

How the Nifty Fall was Mapped by TTO ??

The Nifty made a high of 9048 and has been falling thereafter, unable to hold higher levels. The fall from 9050 levels was anticipated and mapped by Triple Trend Oscillator (TTO) much in advance with the falling trigger line which crossed the zero line around March 30 as shown in the Nifty monthly chart below. This was a clear indication that the monthly trend had reversed and any rise in the indices would be just a retracement or sell on rise rallies.


This is what happened when Nifty retraced from the previous low of  8280 to 8842. Unable to sustain the higher levels, Nifty fell sharply losing 491 points in five trading sessions.

Nifty Monthly Chart

We had in our post dated March 30,  Analysing Nifty Trend under Multiple Time frames   indicated  the reversal in the medium term trend in Nifty :

Nifty pre- May Mayhm !!

The Nifty pre-May mayhm  was dected by us 5 days mack in our post   http://eqtrend.blogspot.com/2015/04/nifty-update-abc-correction.html      when Nifty was trading at 8850 levels. In the last 4 trading sessions Nifty has given up 400 points in one of the steepest fall of 2015. The fall has negative correlation to the the rise of  Shanghai Composite which seem to be attracting FII as they continue to book profit here at higher levels.

The current fall of Nifty  may be wave 3 of C with the overall wave C target of 8100.