There has been a consistent negative diversion in different time frames since the high of 5965 was made in December 2012 but till now it has not been confirmed with significant price correction instead Price have been making higher highs . Lets see what probabilities lie ahead in the following charts and observations -
1. Weekly Chart :
2. Daily Chart :
3. Hourly Chart :
5. Elliott Wave Analysis :
Extending wave 3 ( above its 1.62Xwave1 tgt. of 5965 ) with extending Vth subwave (also above 5965 tgt.of equality with subwave I ) may be the probable EW count.
6. Option Analysis :
5900 Puts and 6200 Calls have almost similar open interest and this can be the larger trading range ahead. 6000 Puts open interest is much larger than its Calls, signalling developing support base at this level and 6100 Call buildup suggests a short term resistance .
1. Extended Upmove continuing as per Charts,Options and FII buy data, Bias Up as of now.
2. Though Daily and Hourly both have bearish patterns with negative diversions , caution should be for bearish bias till confirmed by price action .
3. Close below 6040 will alter near term bias and close below 6000 will negate the short term up trend.
4. Above last high of 6083, we may witness fast move towards 6150,6180,6225 apprx.
5. Shorts have entered system in last week trading, suggested by the drop in futures premium and decrease in cost of carry with increased futures open interest . Above the recent high we may witness short covering .