NIFTY: We are still in wave 3
I am sticking to my count which I had given some time in Aug 2013 as nothing has changed in the hypothesis. Therefore, following is the continuation of the same argument.
Wave 1 started from the low of 4531.15 on 20/12/2011 which took the shape of a Leading Diagonal and ended at 6229.45 and followed by a simple wave 2 correction which corrected 61.8% and made a low of 5119 on 28/08/2013 which marks the beginning of the wave 3. The move that followed had confirmed that NIFTY is in a typical wave 3 move.
Now let us look into the internals of wave 3.
Wave (i) 5119 - 6343
Wave (ii) 6343 - 5933 Little less than 38.2% correction.
Wave (iii) 5933 - 8180 This wave is extended done more that 161.8% (approx 180% of wave (i) )
Wave (iv) 8180 – 7724 This was again a shallow correction done little less than 23.6%
Since we are still in wave 3, the question arises where will it lead us to ? It is presumed that within wave 3, 4 subwaves have been done and now we are witnessing wave 3 (v) .
The typical target for the end of wave (v) and hence for the wave 3 comes at
i)
8893 38.2% of zero to wave (iii)
ii)
8948 wave (i) = wave (v); whenever wave (iii) extends.
If we take into consideration the major waves which began from 4531 wave 3 has already covered more than (of wave 1)
1.618 @ 7866
1.707 @ 8017
The next ratio which coincides with the targets anticipated from the internals of wave 3 happens to be 2.236 times of wave 1 and gives target for NIFTY @
8916. Although 2.0 of wave 1 comes @
8515 one can keep an eye on this along with the internals of the sub wave (v).
The Confluence of Ratios suggest that we may have wave 3 ending somewhere in the region of
8893 - 8916 - 8948.
Happy Trading !
SHEKHAR
