Is Nifty topping out? 14 Nov 2019
On 20 Oct (https://learn2invest.in/nifty-has-the-new-rally-set-in-20-oct-2019/) we talked about a possible short rally and mentioned that the long term investors should wait for all time high before investing large money. And as we mentioned NSEMNC continued to outperform nifty and it will outperform nifty for some more time. However, we see some signs of topping out in nifty, hence this blog.
Today we will only talk about daily as rest other timeframes are almost the same.
As we mentioned last week as per Elliot waves, this is a 5th wave and it can truncate early. At this time we see clear topping out signs on Nifty with a lot of oscillators giving sell signals plus nifty respecting supply area of all time high.
We expect a test of recent demand area at 10,800 levels. Around that time we can review further plan of action.
So with a SL of 12,150 (around 300 points) one can expect a target of 10.830 (1000) points. 1:3 risk reward ratio.
Aggressive people can take short, defensive people should hedge their holdings by buying Nifty PE. Nifty IV of around 14 for monthly contracts look on lower side, HV is also very low at 8.7. There seem to be a possibility of both HV and IV to go up.. (Please evaluate your own risks – its your money)
