Welcome to varuntechview – this blog has been created to publish my views on nifty and other indices or stocks present in the NSE(National Stock Exchange) India.
So lets start with the hourly chart of Nifty,
Today was a volatile day for nifty and part of the consolidation for the recent rise we have seen after the strong decline in the starting of February this month. As you can see in the chart we can see that there are divergences on RSI as on today close and the rising channel on the RSI is broken which shows a period of consolidation. Since nifty has been consolidating for the last two days we could by the end of the week see a rise or fall which will determine the price action to follow for the next week.
Today we touched the 78.6% retracement which stands at 8884.35 after which the fall in nifty was seen. Today’s bias was positive and indeed we close on a positive note however bulls are appearing to fade and future days look set for the bears to make a comeback. If that does happen we can assume that wave C has started for Nifty which will the biggest correction since the last 16 months seen on nifty.