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…..