A fall of 200 points and then gain back of 150 points is what we all expect at situational understanding of todays graph. But I had been researching over past 3 months the WAVES that rule over indices, I completely eradicated all of the Fundamental Reasons for example news crashes or something like Banking Crisis as the reasons for any downtrend and uptrend for once, even though they are the complete reasons. However there exists a Natural Pattern in Technical Analysis, it is the study of behaviours of Participants in a Financial Market, and Indices are the best representation of that behaviour. So coincidently the time period I studied might have elapsed over same conclusive results of wave analysis but I was dead sure in such a bullish momentum that was taking indices over the edges of Buy Signals and every one opinionated buy calls, yet my research was telling me to short NIFTY50 options. Dow Jones Industrial Average rules the exact parameters of Nifty50 the Indian Index as it gauges it to gap up if Dow futures are up or down if they are down. So the methodology to study waves that I implemented is a simple task of figuring out the weightage stocks that are moving the indices, calculate their Fibonacci sequence, sort their demand and supplies and being an analyst at beginners level I also studied the RRG graphs, the relative strengths, the PMOs, the Sectoral Rotation and concluded that April is for the first fifteen days fully bearish.
