Trading Nifty on 21.5.2012

Our guiding light:

Ya
(i)=5342-5154=188
(ii)=5154-5279=125
(iii)=5279-4988=291(155%)
(iv)=4988-5125=137
(v) in play;has to do minimum 161.8% of (i)=304=4820
Seems to be fanning out as as 3x3x3x3x3 diagonal
sw1=5125-4906=219
sw2=4906-4976
sw3=4976-4837=139
sw4=4837-4922
sw5 should not go be more than 139 i.e. 4783

Now the question is: has sw5 (and Ya)ended at 4789?
Only a tick above 4923 can confirm that---
till then possibility of another down-leg remains open.
sw5(a 3 wave form)---was 4922-4789 a 3 wave?
If yes--then we are done with Corrective Ya.
If not then we have done only one subwave of sw5=4922-4789=133
2nd subwave in progress. Usually retraces max. 80% =106.4=4895 as we have done 4908 today so that tilts the balance in favor of bulls. But final verdict would be out only above 4923.
Above 4923 would mean Ya=5342-4789=553 over
Yb started from 4789 upwards--50% retracement meaning 275+4789=5064. 61.8% meaning 5130.


9.35 AM
4922 breached.
Now we should get into buy at dips mode for target 5130.


EOD

EOD:

Daily charts show today's candle as GRAVESTONE DOJI- a bearish indication,showing inability of prices to stay at higher levels.

However, to me, today's take-away are two:

1. Breach of 4922 indicating end of sw5 of (v) of Ya at 4789;

2.Today ,throughout the day,Nifty was above 5day SMA--something it was unable to do since last 12 days .