In my last post I mentioned about possible pullback Rally on Nifty to 5870-5970. Though Market has invalidated previous counts, Nifty is still on its way to 5870-5970..
Since the structure of the fall from 6112 is of corrective nature we may assume this fall to develop as double or triple corrective & reach 4500 or lower by Mar/Apr 2014. Still for this projection we need break below 5250 or the channel support as initial confirmation. That might take another 4-5 months.
On short term Nifty looks to be in Wave 'a' of (b) starting from 5500 which is near completion. On Intra day chart we can clearly see 5 wave move up from 5500 which might be complete at 5794. Or 'v'th may extend to 5840-60. And Nifty might take pause and correct to 5690-5670 before Rallying further to 5970. However, assuming this Fall from 6112 to develop as 'W' the Rally from 5500 looks to be 'b' Wave of corrective nature and might be sold off to 5250-80 in 'c' of W later in May.
The above count is valid until Nifty holds 5670 and/or doesn't break above 6030. In either case we may look for some other alternative.
As a trader we may hold Longs with stop of 5745. And must take profits if Nifty rises further near 5840-60. Those Interested in short may take short below 5745 for target of 5690-5670. Positional shorts to be carried only if Nifty breaks below 5670 in faster time.
Thanks & Regards,