Nifty retraced 80% of previous move....Now 6080,6180 remains watchable levels....strong possibility to hit 6335 again but that could be the end.....
In previous article (published on Nov. 2010. Feb 2011) we said about downward large “C” wave.
Further we said that it could be a triple combination (Published on 18th Jan 2012, as long term view). In that article, we said that Nifty will hit 3800-4200 levels in case of Triple combination but in case of D’ble combination it will end nearby 4400 levels. After that Nifty witnessed 28% fall (58 trading week) up to 4531 levels from the top of 6335 levels and again rebounded at 6000 levels ( rule of D’ble combination, See below “Long term view” chart).
As per proportion of D’ble combination, Nifty achieved “at least 80%” retracement of previous move which comes at 5970 levels and still showing strength ( Remember, D’ble combination always retraces “at least “ 80% of previous move and maximum it can retrace 101% of previous move as per rule. Means, there is strong possibility that Nifty may test 6335 levels in coming session but that could be an end of “B” of large “c” wave or any wave)
In 28th Dec 2012 article , we were watching 5840 levels as main support and 5920 as main resistance for the rally for the last couple of day and were expecting fall around 5760 (TL value) but Nifty managed to hold above 5840 levels and witnessed rise above 5970 levels (80% retracement) . Now, Nifty is trading at 6001.20 levels ( 03-01-2013, 2.40 pm). Technically, the resistance for the day lies at 6040 and resistance for the rally lies at 6080 and 6180 levels. If Nifty manage to hold and sustains above these levels then the rally will get continue and Nifty will test 6300 levels in coming trade. In case of failure to hold 6040 will lead intraday fall around intraday support of 5960-40 levels. Trend will change into –v if Nifty fails to hold 5920 levels as per our view.
Possible wave count…..
The current rally from 4531 could be label as “B” of large “c” wave (OR wave “D” of triangle)and expected to end in between 81% to 101% of previous move which comes in between 6080 to 6335 levels. After that we expect “c” of large “c” wave….subdivision of large “c” wave into ABC flat pattern ( OR last wave of triangle wave “E”.)