Gap followed by sharp bounce/retrace almost always testes the extreme

Nifty opened a large gap down today. Immediately there was a sharp bounce which moved up nearly 32 points. However later this complete bounce was retraced (even exceeded by few points). Not sure whether this turns out as BOF or BPB. I will observe this and update later.  But the point that I want to highlight or note here is that generally such bounces gets retraced completely. So instead of preparing for the counter trend move for the BO of the bounce, one is better off preparing for the re-test of the extreme at least once.

Infy daily chart price action analysis

Infy might be bouncing from 900 zone. It might go up to 1040 or 1083. Then we can expect another round of down move below 900.

OnMobile Price Action analysis of daily chart

In our earlier analysis we observed that OnMobile might be bouncing from the multiple support of 80. But subsequently it broke that level. Now we can expect any reasonable support only near 68 or 61.

Piramal Enterprises Limited analysis

Piramal Enterprises limited (PEL) seems to be forming a multi-month correction pattern in daily chart. 2097 that it did in August 22nd was the end of some impulse wave. From then onward it retraced back to 1366.05 forming the 'A' of the correction wave. Further on it moved up in multiple correction pattern resembling a triangle. Triangles are features of 'B' waves.

Internal wave structure wave structure of this triangle also resembles the a-b-c forms. Accordingly we might have completed the 5th wave of the triangle 'e' at the height of 1927.40 or there is one more up pending till 1965.

After the completion of this we can expect an impulsive move down towards 1450-1300 area in 'C' wave. 

Then? well we might be completing the correction all together or these three waves could be just the 'a' and another 'b' & 'c' pending. Or we can expect a 'X' and another a'b'c.

Whatever be the case, we can at least expect a move up and we might have found the low for recent times to come.

Daily chart with Elliott Waves for Piramal Enterprises Limited.

Nifty Price acction 01-03-2017

There are basically 3 possibilities from here for Thursday's move:
1. Move down till yesterday's price congestion zone bottom and them move up
2. Move up till PDH and then a weak PB and then BO
3. BO and a weak PB => BPB

The up move from the low of Tuseday was very strong yesterday morning. The subsequent sideways move till the afternoon was very weak. Again the subsequent up move was very strong and the end of the day down move or the last two candles were still weak. Hence option 2 and 3 are the most preferred options.

Will observe the price candle by candle in TTF and see which of the path market takes. Or will it take a completely different path?

OnMobile Price Action analysis -27-02-2017

OnMobile MD and CEO Pancholy resigns Following this news Onmobile lost 10% on Monday, 27-02-2017. It crashed to 76.25 at one point. So to analyse the situation I opened the daily chart of OnMobile.

79-80 is a strong support zone for OnMobile. This was tested three times earlier. Fourth time it broke the level but quickly bounced back rejecting the lower level. Now we need to observe how the next bounce and subsequent re-trace. If the bounce was strong and retrace is weak then it will be a very good sign to enter long position.

Nifty Price action 28-02-2017

Nifty expectation for 01-03-2017

30 min chart: