Nifty: EOD 29.3.2012

Continuing with yesterday's chart and Counts:

And C being a Diagonal;this C5<C3(=211)<C1(=259).
Therefore maximum this C5 can do is 5278-210=5068.
As C is a 3x3x3x3x3 Diagonal,C5 has to be a 3 wave form ,out of which
(i)=5278-5170 played out today
(ii) in play and has done 5170-5204 so far
(iii) has yet to play out.


Today it progressed as follows:

And C being a Diagonal;this C5<C3(=211)<C1(=259).
Therefore maximum this C5 can do is 5278-210=5068.
As C is a 3x3x3x3x3 Diagonal,C5 has to be a 3 wave form ,out of which
(i)=5278-5170 =108
(ii)  5170-5204=34
(iii) 5204-5136=68(=.63 of (i) thus minimum has been done.


But has this (iii) of C5 has got completed?
One way to confirm it is a tick above 5204.15


The other is to have a microscopic view:


Some time back, I had mentioned few forms of an Impulse in case of gaps. Let me repeat it here for the sake of clarity:

i.e. a gap-down is followed by a 3 wave upmove and a 5 wave downmove(in various forms)
And today,this (iii) of C5(=5204.15-5136.1*) opened with a gap down in following manner:

A 3 wave upmove after the gap down but the following 5 waves ( as labelled above) are not a CORRECT 5 wave form( as none of it is extended).


So in my view, the DOWNMOVE  AS C5 IS NOT OVER YET.


And I label the (iii) of C5, started from 5204.15 downwards as below:

And my favourite trade for Friday would be to short with a Stop Loss at 5204.2 and targets below 5136 but not below 5068.
Longs to be created as we go below 5100 with Stop-Loss at 5067.


Raghu