Nifty 50 Update

Nifty Update. As on Wed June 1 2022. CMP 16,620. Posted at 11 am.

Bottom line : Bullish short term.

Island Reversal Pattern : Gap down, then 16 trading sessions of sideways to lower price action, before a gap up to a similar level from where there was a gap down.  Essentially there is overlap of the gap up and gap down.  This makes the 16 sessions an island reversal.  This is a strong bullish signal, and the preference is for the recent gap from 16,370 to not be closed anytime soon.


Count 1 : Price could be in wave iii of a flat correction that would take Nifty to above 18,100.


Count 2 : Price is in wave E of a bearish triangle. From earlier posts : A double zigzag would take Nifty to 16,500 ~ 16,700.  A triple zigzag would take Nifty to 16,900 ~ 17,300.

In the very short term, the rally does not seem to be complete.  16,700 is looking likely, based on the very short term wave counts (not shown).