Short on Nifty
Nifty broke out out of the consolidation and has chosen to follow the orange path as shown in the previous update. This is also in line with the Nifty wave count posted earlier (links attached).
The wave (v) down now seems to be subdividing. We have the following wave relations: (ii) > 0.618*(i) and (iii) = 1.618*(i). Thus, 0.38*(iii) <= wave (iv) <= 0.5*(iii) and wave (v) = wave (i) [a common target].
Hence, a short trade now looks good with SL at 10,893 (slightly above the wave (ii) low or 50% retracement) and target around 10,580 (or below depending on the down move).
The wave (v) down now seems to be subdividing. We have the following wave relations: (ii) > 0.618*(i) and (iii) = 1.618*(i). Thus, 0.38*(iii) <= wave (iv) <= 0.5*(iii) and wave (v) = wave (i) [a common target].
Hence, a short trade now looks good with SL at 10,893 (slightly above the wave (ii) low or 50% retracement) and target around 10,580 (or below depending on the down move).
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