View on Nifty at monthly time frame since inception

24 בנוב׳ 2024

Hey everyone,
This is just an attempt to understand Nifty Price action behavior in corresponding to market geometry since inception. will keep it simple.

Time frame - Monthly
Tool used - Schiff's pitchfork. ( points used are 1) inception low 2) high before 2008 crash 3) low of 2008 crash. )
The remaining are clones of the initial Market geometry.


Observation- Whenever NIFTY50 reaches the upper redline (200% extension move) of the Schiff's pitchfork, a correction comes pushing back to Blueline (100%) before resuming the trend again

Instances - ( Highlighted them in a blue circle in the chart)
1) Feb 2015 to Feb 2016
2) Oct 2021 to Jun 2022
3) Sep 2024 to ????

Point to note ----> the first 2 corrections , one took 1 year and other took 8 months but but but , this time the correction came so fast it already reached the blue line ( 100% retracement back).

If the geometry has to hold at monthly level, no further correction will come from here. and maybe the head and shoulders correction is completed it guess ( my level was near 23200 and market came till 23368 levels) that should be good i guess, because when analyzing and drawing few points move here and there...anyway

The major point is as per pitchfork geometry the correction level is over but the point to note is the time duration has not done yet. giving raise to 2 scenarios
1) Geometry has to fail and price come back to median levels ( less probability) due to fast selling this time.
2) Correction already over and market will begin accumulation and will not hit any ATH till the time duration is over , past observations are ( 8-12 months). ( high probability).

Buying might have already started for next bull run. Stay strong till 34k to 35k levels. This is just a mere idea of market speculation, please contact financial advisor for your investment decisions.

Happy Trading!!!!.