After reaching 5399.95, Nifty, on August 17th, reacted all the way to 5341.70, before closing flat at 5366.30.It just about managed to close higher than 5362, which the closing on August 16, 2012.
Rather than fundamentals, it was just the liquidity pushed in by FII momentum traders which kept Nifty floating. Fundamentals, in fact seem to have worsened, what with Coalgate and all the sordid stories related to it.It is sad to see even respectable corporates figuring in the scam.Morally we seem to have touched the nadir.As a student of Financial Astrology, I can only marvel at the way big money seems to be caught out in this developing Uranus Pluto square. It is not in India but everywhere.And to think we have gone through only just only one square...there are six more left!
Let us look at some Fibonacci retracements..
Even the one minute time frame shows a 50% bounce and a triangular formation which this pitch fork chart has captured nicely.
Here are our preferred wave counts for Nifty: