Trading Nifty on 23-07-2012

Starting from my last posted chart & quote:

Above EW position is based on strictly the wave form. The Impulse 5168-5258=90 has to be retraced by a 3 wave corrective. Though it has already retraced 60 points out of 90(66%) but not as  corrective 3 wave form.So on Monday we may open at 5230-5235 levels to slide down to sub 5195 once again to complete the wave form as shown in chart above.
UnQ

In view of global clues,the expected opening of 5230-5235 looks unlikely and instead we are likely to open gap-down. Now the crucial question is --will 5168 hold? If it does then our previous labels hold good wherein:
A=5348-5218=130
B=5218-5267=49
C=5267-5168=99

However, if 5168 does not hold then we have to modify the labels as:

A=5348-5218=130
B=5218-5267=49
C=5267- downwards as an Impulse or Diagonal wherein
C1=5267-5168=99
C2=5168-5257=89
C3=5257 downwards(if extended) should do 1.62x99=160=5097
(200 DMA currently stands at 5099)
As per trendlines--first support is indicated at 5135 levels:

9.10 AM
As 5168 breached at end of pre-open itself---we have to take C3 in consideration from 5257 downwards

12.30 PM
No Price-RSI divergence noticed so far---

EOD

As C3 has not done 1.62xC1 so depending upon how C4 acts--probability of a diagonal can not be ruled out--i.e.we may fill the gap tomorrow and then come down again by more than 150 points---