NIFTY after making a bottom just below 8000 making lows of 7960, which was whisker away from 0.764 retracement move from 7724 - 8626 as shown in our previous post now near 8400 on daily charts (http://swing-research.blogspot.in/2014/12/nifty-bleeding-in-red-looks-oversold.html).
Further analysis on shorter time frame clarifying the wave counts on 120 minutes charts. The Index has made a 5 - wave decline from 8668 - 8008 and now looks like a A-B-C up move.
2 -Hour Chart
Considering the principle of equality and a fibonnaci cluster near 8525 key resistance for NIFTY can be 8462 and 8525 on futures. If the counts pan out again we can see a 5 - wave decline up to 7820 below steep cuts can be up to 7600. Looks like we are in a Wave - 4 of primary degree with zig-zag correction. It is advisable to be cautious and trade with stoploss as NIFTY nearing resistance zone. Stock specific action can continue for few more days. Let us reassess the counts once resistance zone is crossed.
Bank NIFTY resistance can be around 19200 - 19800 - 20000. Still some steam left in Bankex particularly AXIS Bank, InusInd Bank, IDBI and Central Bank of India are charts in focus.
Raju V Angadi
Equity Research Analyst
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