NIFTY50 open today with a Gap up at 10358.85, set a Wave (4) and declined into a Wave (5) low at 10266.95. here a Wave a/1 at higher degree was done and a sharp reversal occurs to close the day at 10308.95. The countertrend is on the way to set a wave b/2 around 10368.45 or 10384.25 area, both are wave 4 level of lesser degrees.
If NIFTY50 will retrace 0.618 of the decline the zone at 10405 is the target, a common target in a wave b/2 move. If it so occur a wave c/3 move to the down side is the next we have to expect with targets at 10187/10150 at minimum, more potencial exist!
All my observe indicators support a longer lasting pullback (note the timeframe), while VIX is strong declining as and are still advancing!
While to my view the decline is still a 5move pattern, after a pullback a second 5 move pattern is to favor
Have a great day.....
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSEIndia.com and moneycontrol.com!