NIFTY Hits Target, Potential Reversal Ahead
NIFTY today has achieved our pending target of 24,400 on spot.
With this, the index is reaching a terminal point of the larger rebound which started from the 21st November low.”
A reversal from this point would likely take more time, as such a shift is typically a gradual process. Significant support on the downside is expected in the range of 23,900 to 24,100. As long as the index holds above this level, a further decline may be delayed. Going forward, support levels will become increasingly crucial.”
Holding supports “We might see a short-term rally to the 24,600-24,700 range. However, I believe this presents a prime opportunity to establish short positions using long-dated put options. If my analysis is accurate, the market is poised to resume its downtrend, potentially with greater severity than the October decline.”
On the time front, as I have been mentioning for the past few days, December 9th is a very critical cycle date, so the intraday range of that date will be important.
Even December 6th is going to be a minor cycle date, so both of these dates have the potential to generate a powerful move in the indices.”
S&P 500: Price and Time Convergence, A Crucial Test
“Finally, on the S&P too, December 6th is going to be a major cycle turn date, so let’s see. The momentum cycles on the S&P peaked out on November 11th, so the recent high is not as bullish as it would have been. On the price front, the zone of 6080 to 6120 would be a strong price and time squaring resistance.”
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