Nifty Pharma Analysis

Nifty Pharma Analysis. As on Monday, 1 March 2021. CMP 12,050

Pharma has been teasing us, giving us false bullish hope and then declining each time.  But we still expect a rally to materialize.

The larger trend is still bullish.   Primary count is bullish both short and intermediate term.  Alt count is short term bearish but intermediate term bullish.


Primary count : The count has been adjusted slightly to show a completed or nearly completed 1-2-1-2 pattern.  This means a strong 3rd of 3rd wave rally could commence at any time.  We believe that the sweetest part of the 3rd of 3rd wave up is ahead of us, and should be quite near.

Read below for important levels to confirm the 3rd of 3rd up is underway.

(The 3 day chart below is a problem.  Price shows that 10 EMA has crossed below the 20 EMA which is not good for the bullish case, but it could turn out to be a false signal).

 

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Ichimoku Cloud :  The daily chart is a concern.  Price has closed below the cloud for several days.  Price needs to close above the cloud to bolster the 3rd of 3rd wave is underway.  Of course it is preferable if all indicators and studies are in alignment, but in this case we believe the elliott wave bullish count takes precedence over the ichimoku neutral to bearish view.

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Alternate count : This count is also intermediate term bullish, but short term bearish.  A test of 11,000 is on the cards in an expanded flat correction before the larger rally resumes.