Greetings traders, this post deals with in-depth NIFTY Technical analysis for the week 16-JAN '17 following our monthly analysis,

The analyzed chart clearly states that there are three probable scenarios at this juncture. Lets understand the weightages given to each scenario in detail,

NIFTY Technical analysis - Scenario 1

 Simply put, this is the less probable scenario in the analysis because as we analyze the lower degree time frame, say H4 - all we can find is the chance where X2 might not be completed and this implies that there is a final leg impending! to complete wave X2 as a retracement to wave Y (in primary degree).

Hence, it is highly unlikely that wave Z (in primary degree) will be unfolding as an immediate down trend or in other words, the below chart has less chance to be a double three correction.

NIFTY Technical analysis - Scenario 2

The lower degree (intermediate) chart shows that  wave Y has topped & there is a retracement imminent & after completion it might pave a way for final leg (wave Z as a triple three) in the intermediate degree - in daily time frames! and this final phase of correction has low chance of reversing from the resistance area below .786- as in fig1.

NIFTY Technical analysis - Scenario 3

The analysis in intermediate degree is same here as that of scenario 2  - We are expecting a final wave of correction (Z, in the same degree) but the calculated target is in .786 R area of Y wave in Primary degree (REF fig 1).

SUMMARY

The short term trend is bearish, irrespective of it being an double/triple three in the intermediate degree.

If the  market seems to have a rigid support at this areas then scenario 3 is the high probable outcome! However, the important change to note is that the X2 might not completed yet & we are expecting a breach of .786 levels.

We will follow up this analysis in this forum - stay up to date with us!

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