Nifty EOD 12-9-2011

Another day of furious gap-down and further fall.Though I was able to get the direction(downwards) correct,I had counted this fall as C2 which was proved INCORRECT.

Looking at the retracement of wave 5740-4720 upwards,I am now counting this retracement as 3 wave ABC wherein:

A=4720-5114=394

B=5114-4911=203 as an Expanded Flat wherein:

(a)=5114-4943=171

(b)=4943-5169=226(132%)

(c)=5169-4911=258(151% of a)

C=4911--upwards

Minimum target for this C=0.618*A=244=5154

Normal Target for this C=A=394=5305

For a look at the charts:

http://img18.imageshack.us/img18/7074/nf1292011.png

Now all longs should keep a Stop Loss at 4910.

Best of luck.

Raghu