Nifty : EOD 4-6-2012

The simplest of labels for the downmove from 5020 would be:

Theoretically,these labels would be invalidated only when the (iv) violates the territory of (i).
However,two three observations have led me to believe that this invalidation is only a matter of time.
How?
(i)=4982-4884=98
(ii)=4884-4947=63(64%)
(iii)=4947-4770=177(180%)
(iv)=4770-4858*=88 (50%)
Normally when (ii) retraces 62% of (i),(iv) retraces 38% of (iii). But lets not make it an issue here.
Lets go inside this (iv) in 5 min charts and see haw it has fanned out( remember,this (iv) has to be a 3 wave form):
Either it is developing as:

or as

And in both the cases, to complete a 3 wave form,it needs to breach 4884.
And the Hour TA, cross-overs in particular, are indicating upward momentum continuing for tomorrow:

In every likelihood we would test 4885 early morning,dip intraday and then cross 4900  by EOD tomorrow.
If overnite, things turn negative, we may open lower but move up again to test 4900 by EOD.

So I would prefer to label the down move from 5020 as:

Now here again an issue is there:
(i)=5020-4945=75
(ii)=4945-4982=37(50%)
(iii)=4982-4770=212((282%)
(iv)=4770-4858*=88 so far

And if this (iv) has to go across 4900 that would take the length of (iv) to 130+
And the (v) that has to start after (iv) and has normally to end below (iii) would be doing a length of 130+ which amounts to more than 1.62*(i)=1.62*75=122 so are we in for a truncated (v)?
And a truncation would mean fast and furious upmove beyond 5020----

Taking into consideration all the above, I am inclined to label this downmove from 5020 as follows:

 And do keep in mind these trendlines:

And mind you, the nearest one is not far off:

So net-net we have to be ready for following pattern:

Smart fingers can trade this dip also on the short side with the help of 5 min charts.
Others should use the dip to go long for 4900+ targets and use Hour charts as there guide.

Aaj kuchh zyaada lambi post ho gayi na?

Dinner time---
Raghu