19 August 2012


Hi Friends,

In our last post we were examining the possibility of two alternate wave counts:-
1. Zigzag in B
2. Triangle in B

Since the move from 5032 to 5400 is clear 5 wave Rally possibility of Triangle is now being ruled out.

So Nifty might be forming a Zigzag in "B" of which 'A' was over at 5499 & 'B' at 4770. Currently Nifty is in 'C' leg which might be developing as an Ending Diagonal.


The Rally from 5032-5400 looks to be 'a' leg of the 'C' of Ending Diagonal a Five-3 Structure.
Nifty is just closing on the edge of this Rising Channel. All longs now need to be liquidated. And a possible trade here is to remain short with stop of 5400. Fresh longs need to taken only above 5400 or after meaningful correction.

Nifty might now trade within the range of 5300-5400 for 3-4 days just like it remained Range-Bound in June after completing 'a' leg of the 'A' of Ending Diagonal.

The immediate support is placed at 5320-5330 below which Nifty may grind lower to 5289-5260. At most it may try to fill the Gap at 5246. But we still believe in a Range-Bound Price Action a Time wise Correction than much of a Price Damage..

So lets Wait & watch..

Thanks & Regards,

Harsh Dixit.