NIFTY & US 10 Year Yield have a high degree of positive directional correlation. Anyhow, they are diverging at the moment though the divergence can go on for a long period of time as well, last time around this divergence did not work well for NIFTY & it got pulled down.

US10Y going down simply implies funds moving into Bonds and with EM's broadly down from Jan Highs this adds up as well.
That makes NIFTY an outlier, with the philosophical question being for how long can we persist?
This is one of the structural perspectives, however, it all rightfully boils down to the actual NIFTY's price action and that hasn't given any severe indication yet.
Though we must stay on guard.

More from Piyush Chaudhry

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#Nifty

So now that Nifty has undergone ABC correction in the expected manner, what to expect next?

I think we have started larger degree wave 3, once 16800 was crossed.

16800 is the reference level now. We will get more sense by end of next week/ month. https://t.co/KsziuUpZxU


#NIFTY

If 17445 is taken out, then may be we are heading to fresh new all time on Nifty.

Things may pan out way faster than expected.


#NIFTY

Zoomed in cross-section of the chart above.

Wave 3 of 1 should have started today, which can take Nifty to fresh all time highs.


#NIFTY

So now Nifty is moving more clearly on the expected path, what's next?

Nifty has started longer term wave 3 advancement, pending final confirmation of HH by crossing 17800.

In Wave 1 of 3, can expect a move to 20k+.


In terms of longer term wave structure:

Wave 1: 7500 to 18600
Wave 3: 15700 to 35000+

And this can pan out over next 2 years or so.

Since wave 2 was a shallow correction, wave 4 can potentially be a deeper correction.

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