NIFTY: 31 May 2012: Already quoted on 29 May 2012 for the fall of 3-5 days on the failure of 5040. Expect dip up to 4877 or 4843 before any rebound.

You must read previous articles and watch above chart carefully to understand this article completely.

I have already stated the fall may begin from 29 May 2012’s second half. Most important is that we remain away from 5040 resistance levels. It exactly moved in that manner. We are on the third day of trade today. SGX is giving all sign of gap down opening.

Its true that for intraday it tend to generate some levels which save fall for intraday for majority of trading session and reacting in last 20 minutes only. This is strongly a troubling days for traders. You all know how tough it is.

Read the above chart and watch the given levels for today’s trading session. I strongly believe on ratio analysis and here are some crucial details.

Take a recovery wave i.e. a-b-c. From 4789 to 5020 (Note that we have successfully forecasted those on time or before time). Taking retrenchment few important levels are as follow-

• 4932 – Very obviously, it will not be visible in opening minutes.
• 4904 – Gap down will give you opening near to those. (Consider 3-4 points of approximation)
• 4877 – It will be the result on the failure of 4904 on decisive break.
• 4843 – If panic hit the market then you can expect fall up to 4843. Do not forget that we are on expiry day so nothing is impossible.

Why I said earlier that 5040 will not be tested?

Reason – Make a count of 50% of down wave from 5279 to 4789. It ended @ 5034. (I do not want to force you to believe me. Believe the study).

You can note that I put the 5 wave count beginning from 5279 only and end up the 5^th wave at 4789. (All levels were successfully predicted before they hit).

Now we were in a-b-c corrective up wave.

I am repeating this again –

“Look at time cycle. We had 13 days of fall and then 8 days of rise. (13 and 8 are Fibonacci numbers). Up coming down cycle may have a life of 1, 2, 3 or maximum 5 days. I will update more about the same in my intraday analysis or tomorrow.”

Depending on market condition we will release intraday updates too. Till that time, you can post your views also so that I can present better result for you. Intraday posts are available on www.viecapital.com only.

Read www.viecapital.com for stocks views

Follow us on twitter a/c 'viecapital' to get intraday updates.

Thanks & Regards,

Praveen Kumar

Mail id – Praveen@viecapital.com

Mobile number – 09893369889