NIFTY is stuck at highs so today let’s discuss the larger setup as I se it.
We already discussed the near term outlook yesterday.
For me most important part is even when NIFTY is at fresh highs NIFTY BEES is still 2.5% away from its record high.
You may ask what’s NIFTY BEES?
Today let’s understand NIFTY using textbook guidelines of GANN THEORY.
In his BOOK,
MASTER STOCK MARKET COURSE,
in chapter 4 sir GANN have discussed in detail on GEOMETRICAL ANGLES.
and within that chapter at page 22 he has given few very important guidelines on FORECASTING TOPS and BOTTOMS.
He said that Most MARKET run out in 3 important sections or campanes normally.
but in some cases there would also be the 4th section of a larger move which would mark the culmination and generally this TOP or BOTTOM of 4th section always triggers a major REVERSAL.
this 4th section is always very tricky and market goes through a very irrational phase specially towards the end of the move.
And currently on NIFTY we are exactly in that phase.
Not only on NIFTY infact for all major INDICES baaring CHINESE MARKETS we are standing towards the end of that 4th and final section of this upmove.
For NIFTY from june 2022 low this is the 4th reaction.
Let’s recall all those reactions in their order.
The 1st reaction started from June 2022 low and culminated at SEPTEMBER 2022 high of 18,096.
The 2nd move or reaction started from SEPTEMBER 2022 LOW to DECEMBER 2022 high of 18,887.
Note both this REACTION lasted only for few weeks.
So 3rd REACTION which is always an important move has to consume more TIME then 1st 2 REACTIONS.
and that did played out on expected lines.
3rd REACTION started from MARCH 2023 low and continued all the way till SEPTEMBER of 2023 it ended at the PRICE of 20,222.
So from there we got a REACTION which overlapped the TOP of R2 of 18,887 in OCTOBER of 2023.
Hens the recovery post OCTOBER LOW in mid NOVEMBER gave early indications for the rare 4th section of the entire upmove,
The higher high above 20,222 in DECEMBER actually confirmed that.
So since then 4th section of the upmove has been continued and currently we are at the final stage of that move.
I have done these calculations on much larger time frame even if I do it on smaller T/F then also we can get the same result.
even if I count from OCTOBER LOW then also I would end exactly within the 4th section currently.
Well its getting too long now.
Was planning to include setup of U-S-MARKET here as well but short on TIME today.
Would include them later probably in sundays post.
Thanks alot for all the feedback on yesterdays post.
Couldn’t reply all EMAILS yesterday hens sharing this peace as a public post thanks again 👍
gann,insides 