Nifty is following the pattern we discussed in the last blog. February 28th opened with a gap down. I've often observed that Nifty 50 tends to hit new lows on Friday, and Monday might see consolidation or a brief reversal before the trend continues either upwards or downwards. This suggests there could be a potential pullback to form an ABC pattern for wave 4 mini, which is pending if wave 3 mini is complete. With the rapid downward movement, it seems wave 3 mini is finished, so I will be looking for pullback opportunities as indicated in the chart below.
Nifty 50 Chart below for 3rd March 2025 analysis
Nifty 50 needs a small 50-100 pints pull back to cool off over sold indicators like RSI or CCI etc. Also wave 4 internal is pending. This will be in ABC format.
What to do if you have call option for next week?
If you hold a Nifty 50 call option for the upcoming week and feel uncertain, here's some relief. We have likely completed the wave 3 black mini wave, and a pullback for wave 4 is due. This will follow an ABC pattern, and it's advisable to book profit or exit at the top of wave A instead of wave C, as wave B will be slow and lead to theta decay. For targets for Wave A, refer to the tweet. Trade at your own risk.
Post Trade Analysis:-
Come back tomorrow again for post trade analysis on 3rd March 2025 (Post Market)
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