I was seeing S&P CNX Nifty from different ways and I came into two conclusions. Now both these views can have option to occur. Now let see them.
Since around whole world sentiment is negative so look like above one is quite inhabitable, as a matter of fact most people are expecting this to happen. And believe me if this happens we are going to see market far below from here may be around 2008-09 low, as we can see it from above chart. Now let see the 2nd view.
In this chart as we can see that basic features of wave has intact so to make a new wave, market needs to go far above from here and that is the only option for this waves to be true.
So I am little bit confuse about this so we need to look some other Emerging market charts.
Bovespa is quite similar with S&P CNX Nifty, both have 2 different views those are prominent in charts. Now let see Kospi.
Kospi has similar pattern with Russia titan.
Though 1st view is not prominent in case of Kospi & Russia Titan, but other one is quite ok for all of them.
Looking at some other Emerging market charts it looks to me that probable the 2nd view is quite better in this moment. But it needs more time to prove whether it is ok or not. Obviously the way political crisis is going on, things can change in any moment and all the equation will prove wrong as it uses to be.
But the bottom line is equity market will not go in the way which everyone expects it to go. And sometime contrary opinion really works. Let see ………..
NOTE : Please see the disclaimer of this blog.