Indian Indices NIFTY & Sensex are at a important zone. I chose the Sensex chart over Nifty as it was less impacted by CAS in the last 2 months and the wave counts are clear.
Sensex is about to complete 5 waves down. it has a last dip pending towards 73200 ( for nifty 22750-22900). After which there can be rise upwards.
As the fall of 5 wave comes to end from august top. There are 2 alternatives in front of us.
Alternative -1
The move up from here will only be a retracement of 50%- 61% and then we will have another leg of downmove (Above chart)
Alternative -2
When we zoom out a bit, There is clear 5 waves in wave A from april lows.
The entire consolidation from april top has been in sideways range. It has 3-3-5 flat corrective wave structure which is represented as circle a-b-c which implies completion of correction and start of something new.
The new upmove wave C may break the high of wave A (which is 79400 ) and move higher.
I am inclined towards alternative – 2 move above 79400. but we get to know only when we break 61% retracements and starts moving higher.
Failure in breaking 0.5-0.618 levels will make me to go with alternative 1. So 76000-76800 levels will be important to watch.
