August 08, could be interesting...

Elongated Zig Zag correction has fallen 5348.55 to 5032.40, about 316.15 points.(c )at 5032.40 ends the abc correction and till date, the retracement has been 317.70(5350.10-5032.40) points. So the retracement has been 100%.

The last leg down, (c) has moved down by 224 points. Since (b), (c ) and (d )have formed a Neutral Triangle, the expected up move from the point ( e )had been 224x75%= 168 points. That gives us a target of 5164+168=5332 points.

But Nifty couldn`t care less for these calculations! She zipped past yesterday, to touch 5350.10 and then do a little retreat.

In that case, we now have the possibility of wave 2 having ended at (e ) and 1 of wave 3 begun.

It all depends on today`s movement.

If Nifty continues to appreciate, then we are in 3 of C.

If Nifty turns down then we mark 5164 to 5350.10 as x wave and look at another abc correction unfolding. In other words wave 2 would continue beyond (e).

We continue to be in Mercury`s retrograde period today, till 11:09:58 hrs today. So the possibility of Nifty moving up to 5376 and then retreating into an x abc formation also exists. This is because during retrogrades of Mercury, markets do not respect projects or supports or resistances.

On the other hand today happens to be a Ketu star day. Ketu is in Sun, which is bullish for Nifty. So the up move could continue after a minor correction…..