Nifty EOD:8-12-2011

Yesterday I had mentioned two probabilities,and the following one became a reality:

Now our Count stands as:

W1=4639-4866=227

W2=4866-4755=111

W3= 4755 upwards and should do a minimum of 5122(=1.62*W1) to max 5720(=4.25*W1) in 5 sub waves:

(i)=4755-5099=344

(ii)=5099-4921*

ALTERNATIVELY, it can be counted as:

W1=4639-4866=227

W2=4866-4755=111

W3= 4755 -5099=344(151%)

W4=5099-4921*

W5 to come up as extended beyond 1.62*W1-- however I reject this alternative as a 4th wave usually is not so sharp as witnessed today

So the labels adopted by me are as follows:

And now we have to analyse the Corrective from 5099 downwards:

As it is a retracement of 4755-5099=344, it has to be a 3 wave form & probable targets are:

50% retracement=4927---done today

61.8% retracement=4886

76.4% retracement=4836

Now lets try & analyse the form taken so far by this Corrective:

5 min chart:

And on Hour Chart,another possibility appears which also needs mention:

Either way, for a logical three way form, this Corrective looks like testing 4885 for sure, so one should take stance accordingly.

Best of luck.

Raghu