Crown bro,
A broadening formation has developed in Nifty. As you can see in the chart attached. This is also called broadening top or Megaphone Top. As such, the implications are bearish. This is a very rare formation and difficult to trade.
Normally, volumes behave erratically with wild swings in prices. However, I am puzzled by the continuous decline in overall volumes since 4th October, when the pattern started developing.
All the oscillators have already given sell signal. Nifty fell below 14 DMA (6117) on 15th October, after one and half month. We saw a pull-back to 6121 but it is not able to cross that level. Hence, IMHO, it will fall further. This fall will be at least equal to the fall from 6284 to 5967 i.e. 317 points from today's top of 6121. This measures up to 5804. The 50 DMA is currently placed at 5806. 50% of the entire move from 5349 on 31st August to 6284 is at 5814. Hence Nifty will fall to that level.
It is therefore dangerous to take any long position at this juncture unless nifty closes and stays above 14 DMA which is at 6108 now.
Here is a chart of Dow Jones
Dow Jones Index is also rising since 31st August. Currently it is at the top of the rising channel started since 1st July. The oscillators have given sell signal. If Dow starts falling, nifty will follow.
Josh1