22 August 2012


Hi Friends,

It is very interesting to see when Market is distributing different stocks at different time. Time Cycle wise Pharma stocks are the Late Movers in Market & generally form Right Shoulder of the Market Head & Shoulder.


Current advance on CIPLA looks to be nothing but a corrective advance in (c) leg of the 'B' of Flat. CIPLA currently looks to be in Cycle Degree 4th Wave Corrective which is a large Fractal & might be developing as Flat Corrective.

A 3 wave move from 380-275 is marked as 'A' leg & Currently its moving in another 3 wave move up in 'B' leg. The 5th of (c) shall take some more time till mid Sept. to reach 370-380 area. Once 'B' leg is over the Stock may start drifting lower in its 'C' leg of Flat towards 275-250.

Currently we are examining this preferred Count of Flat in 4th Wave. In case of Flat C shall be a Clear 5 Wave Move Down & may take lesser time than A & B. However, we would consider the alternative of Zigzag as CIPLA starts Drifting lower towards 275 & internal legs unfold.

So strategy for Investors is to exit the longs as stock moves up.

Thanks & Regards,

Harsh Dixit.