Yesterday only i was talking about that it could be most talked about " V " shape recoveries in Indian Markets and today it has completed my wish. Only 12 trading sessions, i repeat only 12 trading sessions it took for markets to show almost a complete swing of 20 %. First a 10 % correction from the levels of 5000 to 4500 and then from 4500 to 5000, that is also a 10% move even more than that. There are 3 types of recoveries that we usually see in markets namely U,V and W. This latest one is a " V " one. Below is the chart to show how a " V " shape recovery look like. Just look how sharply it corrects from the top of 5000 to almost 4500 and then how it recovers back to 5000, all this in 12 trading sessions.
Nifty view: The view remains the same as yesterday but the only difference is that i was expecting a consolidation before a move to 5300 but i think markets are in a hurry to complete the targets :). Nifty should head towards the upper part of channel i.e. 5300. On the downside if the trendline which is placed at 4600 is broken, then we can see fall upto 4400 levels
Dow Jones View:
Exactly same chart pattern was observed in Nifty at 5150 odd levels and we all know Nifty corrected almost 15 % to 4500 odd level. Going by the charts Dow Jones will face huge resistance in the zone of 10300-10400. As of today, It falls back almost 100 points after touching a high of 10342
Have a wonderful trading day!!!
Regards
Ankit
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