Nifty on Feb 27th Thursday opened gap up and I was holding puts. However holding them for next week expiry. Overall trend seems to be bearish. The gap up opening seems to be a wave 4 internal bounce which hardly made ABC pattern, something to look at later. However wave 1 earlier seems to be extended and this can be a scenario wr or wave 4 in gap up formation.
Now looking at current chart, it seems that Nifty50 will open gap down and go lower towards 22400 levels.
Nifty50 Chart Analysis:
From the high of 23087, that was wave 2 top and now we are in wave 3, within this wave 3 (pink) we are moving in 5 waves down marked in purple waves. Within purple waves we are in purple wave 3 which will have 5 waves of its own. Here marked in dark green waves e.g. (1), (2).. and we are in wave (3) which has black 5 waves called mini waves. We are in wave 3 of this black which should complete around 22400 levels before a bounce again for wave 4 towards 22550 levels.
Nifty 50 5 min chart looks bearish moving in 5 waves down.
Can there be gap down for 28 Feb 2025?
How to play Nifty 50. Options?
Sell on rise, focus on bearish momentum for now. Trade at your own risk.
Post Trade Analysis
Nifty opened Gap Down as we were anticipating. Overall low needed with 400+ points down. I was able to capture most of it. Now I am looking at pull back upwards mentioned in next blog for 3rd March 2025.
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