IPO Index
IPO index was created for a reason. It displays Sentiment of retail participation. IPOs are often the hottest market when markets are at a high and everyone wants a piece of the action. many investors find comfort in bidding for an IPO than buying directly in the market. It is not clear why but it is true. IPOs also perform well onlisting during a bull market giving immediate gains and that could be a reason
for the interest. So when the IPO index starts to fall, and listing gains are not coming people lose interest in the IPO market.
Now the IPO index, it formed an ending diagonal into April of 2018 and then started to fall. So the wave II high was made, the Nifty was at an all time high. Now the entire fall in the index is 5 waves down clearly. And all we have done is bounce back in wave B to near the wave IV high. That done the next move should be wave C down to new lows.
