Nifty faces strong resistance at 5099-5100. This should ideally be the SL for shorts. Alternatively, it can test the channel resistance at 5150-80 to 5290 in which case this becomes a bearish crab - gartley pattern - see example below.
There is a hidden divergence on Macd & price shown on the chart & also falling momentum based on the histogram which indicates exhaustion / lack of momentum - for correction - targets in the range of 4871 & 4741 - Below 4800 Nifty will test 4400/4200.
I forgot to add - there's one more possibility - A test of 5132 - 5200 which are the 200 EMA and DMA
Example Bearish Crab if Nifty tests 5290~ levels - Since a bearish crab has a 327 - 361% implication of a BC leg for targets of D to be at 5290. SL @ 5100 for shorts.
Gaps are indicated on the chart with blue and red lines - these need to be filled.
Similar chart for Banknifty - divergences on MACD and a test of 9800-10000 is due. I expect reversal on the Banknifty post testing 9800-10000. Bank nifty seems to complete a 5 wave upmove in which the 5th wave is extended
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