Trading Nifty on 30-05-2011

So Yb started from 4789 upwards now stands labelled as:

YbA in progress:
sw1=4789-4956=167
sw2=4956-4804(ended at 4810)
sw3=4810 upwards in progress
(i)=4810-4908=98
(ii)=4908-4856=52
(iii)=4856 upwards in progress target minimum 1.62*(i)=159=5015
4856-4932=76
4932-4889=43
4889 -5020=131
5020-4983*=37
4983---upwards by min 47 likely  to complete (iii)
Thus T1=5030
T2=5060
Then (iv) to bring it down to 4990 again

The above illustration is a copy-book perfected projection.
However,as the minimum required for (iii)[5015] has already been done,we may already be in (iv) from 5020 downwards---so yesterday's low has to hold for above projection to come true. And a tick above 5010.85 would confirm this projection.
And a tick below yesterday's low would open the gates for 4970 level and then if we tick below 4969, it would confirm that we would slide to sub 4932 during the day
9.08 AM
End of pre-open session shows an opening at 4964.5.
That means we have to label the waves as follows:

A test of 4930 is likely.
However,4907.7 should not be breached as per these labels.
So all rises(intraday)to 4990 levels should be shorted with a target of 4930(Stop-loss 5011);
And once below 4930,one should go long for a target of 5020+ with stop-loss at 4907.


These two trade-set-ups should be followed during the day----


11.17 AM
Expected waves:

1.15 PM
For those like me who were waiting for gap at 4982 to be filled,the opportunity never came.
The downmove from 5020.1, labelled by me as (iv) has to be a 3 wave form say (iv)a;(iv).b and (iv).c

(iv).a---a 5 wave form--as shown in chart below-- would be over at sub-4945 levels
Or may be a Flat in work to fill the gap--

2.30 PM

At long last,the gap as well as my order to short--got filled--

Minimum target for (iv).c is 0.62*75=45=4983-45=4938
3.25 PM
very close to target.
Do not carry shorts overnight


EOD:
Lets have a look at how our labels stand currently:

Yb started from 4789 upwards now stands labelled as:

YbA in progress:
sw1=4789-4956=167
sw2=4956-4804(ended at 4810)
sw3=4810 upwards in progress
(i)=4810-4908=98
(ii)=4908-4856=52
(iii)=4856 -5020=164
(iv)=5020-4945* in play
a=5020-4945
b=4945-4982
c=4982-4945* minimum required is 4938(c=min 0.62*a)
(v) upwards to start after it.

A tick below 4907.7 would, however, invalidate this Count.


Raghu