NIFTY50 gaped down this morning, closed the day @ 10821.35, intraday low @ 10794. 40 .
This level is just 14 points above the area, were wave c is a 1.382 of wave a.
So it could be that the decline is initially done for short term or it needs one more down sequence.
Any extension of the weakness would lead N50 to the level surrounding a wave ((4)) of lesser degree @ 10562.90 (marked with the black arrow). More potential exists.
At the 60 minute chart, I show a possible wave count, which would be in line with my thoughts. In this case, it could be that N50 would show a „snap-back“-rally the level @ or around the 11106-11204-11259. All these areas include a wave 4, a 0.382, and a 0.5 of the sell-off.
Don`t catch a falling knife!
Have a great week...
Feel free to ask or comment!
Trading this analysis is at your own risk!