Nifty Pharma Analysis

Nifty Pharma Analysis. As on 30 March 2021. CMP 12,206. Posted at 6:40 pm.

Pharma index had a good day, up 2.7%.  But until there is further evidence, we suspect the expanded flat correction to the downside is not yet complete.

One of the 3 counts below shows the correction is complete.  The other 2 call for further lows.

The 10 EMA crossing above the 20 EMA is also required on the 3 day chart to identify the correction is complete.

No preference re counts at this moment.


Count 1 : Price could reach the 12,500~12,600 level in the short term, before further lows are seen.

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Count 2 : This count is similar as concerns the downside target, at about 10,300 ~ 10,500, but this shows the correction would end sooner than the count above.

 

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Count 3 : This count shows the correction is finished at 11,280.  But this is technically not as sound as the above 2.

However, an impulsive 5 wave rally could change this count to the preferred count.  Or a rally above 13,119 would also likely mean the correction is complete.