Nifty 50 analysis for 03 Sep

2. Sept. 2020

We expected a gap up opening, however Nifty opened flat .. However, the market headed in the same direction as suggested in yesterdays post.. Moreover I had also mentioned that, in case of a volatile market, we may able to witness the first leg of next impulse post completion of correction .. Nifty after correcting till 11430 level, commenced its next impulsive wave. Do bear in mind that this leg is the 5th wave of impulse which started from 11292. Presently, 3rd internal wave of this higher degree 5th wave is unfolding. So it is well understood that Nifty stands bullish for tomorrow as wave this 3 shall be followed by a correction and then wave 5 as well. So expecting a gap up opening, or in case it opens flat expect a rally .. The level of 11540 should act as a strong support zone during corrections. However, watch out for the red dashed line plotted on the chart at level of 11617. This level is critical as this is where the previous higher degree wave 3 ended. Hence the present higher degree wave 5 needs to surpass this level, else shall result in Wave 5 failure, which in itself is bearish and may result in deep correction.

Note - Views expressed are purely personal and solely intended for educational purposes. Same may not be used for trading instruments