Tuesday, August 30, 2016
Nifty Wave Counts August 30 Update
Since March 2015, Nifty has been forming a series of complex corrective waves, which are now grouped majorly as ABCD and E.Right now we are in wave D. Wave D is already bigger than wave B. This means wave E could be a shallower affair than if it were the last leg of an expanding triangle. It will be a variance of a Neutral triangle with possibilities of E wave failing.This had started from 6825. Formed five internal waves, abcde. Corrective down move was Brexit event.Since the market recovered, we started one more abcde combination. Connecting the first set of waves with the latest ones in the x wave.In a complex corrective, there can be a maximum of 2 x waves.
Currently we have completed wave d and are in wave e upwards.
Once this wave e is completed. then Nifty can do two things.
1.Come back to the 0-x line form a bottom and reverse upwards into yet another abcde or even diametric formation. That could immediately take Nifty very high. For that to happen, Nifty must break out of 8750.
2.Or fall from wave e, break the 0-x line and travel down swiftly, taking out the last up move in faster time. Then we will be in wave E downwards,which can go all the way to 8000.
For that Nifty should take out 8543 convincingly on its way down.
I had posted this chart, since we are at an important inflexion point.