Technically we are entering an important turn zone for Nifty. By October 26, we have completed 14 days from October 05 top. Since Wave 3 took 20 days we expect wave 4 to take more than 20 days to complete. This means we are entering the maturity zone of Wave 04.
So far we haven`t seen significant price damage. In fact Nifty just about managed to breach the 5641 level a couple of times, but had always scrambled back into the oscillating zone defined by 5722 range as resistance.Despite serious declines in S&P and the Dow, Nifty had shown negligible tendencies only (so far) to go down. This suggests that once wave 4 completes we may expect a normal wave 5 and not a truncated one.
Here is a chart on some interesting Fibonacci phenomena in Nifty….
Here are my preferred minor wave counts for Nifty, shown on a 30 min chart.It should be interesting to see whether wave b of C will cross 5719, the recent top.Any way 80% retracement to 5700 should be a sell area.
Have a great week of trading.