Sensex from Gann perspective

Sensex took strong support at Gann line that is drawn from 0 levels

Inflection point

Explanation

Sensex has reached a point where we need to wait for a clear trend to develop and give more clues about the wave structure

The current pull back may end soon and we may begin a new wave (3) up but it is imperative to get price confirmation first

Long positions can be build, if the high of Wave (1) is taken off, but with caution

As we said the previous day (please refer to previous blog) that minor correction till 14800 - 15000 is expected and this is what happened in today's price action and prices rebounded from 14900 levels
Also observe importance of 23.6% retracement level that again formed an important support from where prices bounced back

Explanation
It looks Sensex has completed minor wave 5 of wave (i) or wave [5] of the entire rally since late October

The preferred view is positive and we still have lot of room for current rally. We do not see any exhaustion in Sensex either in terms of Advance decline ratio or in terms of momentum

The rally has slowed down its pace but abrupt end is not what we expect

It is imperative to look for clues in next few days for confirmation on the direction

A minor correction at least till 14800 -15000 (area of previous 4th wave) is what we expect in coming 2 to 3 days after which next leg of rally may start

Wave interpretation of Indain Market

Explanation
Please observe how effectively Sensex is following 23.6 % retracement levels. Also wave (iii) is equal to 76.4 % of Wave (i)

It looks wave (iv) is over but still need to get price confirmationWave (iii) is shorter than wave (i) and so Wave (v) should be less than 16200 as wave (iii) cannot be shortest

If wave (v) exceeds 16200 it will indicate current wave (iv) as wave ii (circle) of lesser degree and a strong wave (iii) is underway