Here is a quick analysis of the hourly chart of Nifty. I\’m being honest when I say the short covering rally witnessed in the index in the past three days was nothing less than a shocker. I has been short on Nifty from the 10950 level having spotted the end of Wave B just in time. However (call it complacency) I did not atall look out for a potential support on the chart when the index started falling from 10950 and wiped out nearly 600 points. Having patiently seated out this rally I can see a resistance on the chart. RSI has also has the chance to breath and climb up to the 60 level. The only worrying factor is that RSI crossed the level of 60 yesterday, which is something I was hoping would not happen.
Irrespective of that I will look at the bigger picture and bet on Nifty going ahead and finishing the Wave C. The chart analysis is attached below.
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