Nifty Astro Technicals for October 16 2012

After rising for 20 trading days from September 06, Nifty has corrected for 6 days so far. From October 05.It looks in all likelihood that Nifty may get into a 3-3-3-3-3 triangular corrective mode, with each leg becoming smaller than the rest. Triangles are generally lack lustre and difficult to trade from a positional trade perspective. Since Wave 3 had consumed 20 days Wave 4 should consume a minimum of 20+ trading days. We enter the 7^th day today.

Daily intraday momentum signifies a rise to the overbought zone, while the weekly momentum indicator is signifying a fall. Since the larger trend is always the stronger, risk reward ratio is in favour of selling on rises for the time being.

Since we assume (until confirmed or proven otherwise) that Nifty has entered wave 4 and wants to form a triangle, with 5 legs of 3 folds each. We may look to see whether Nifty crosses 5747 which is 61.8% of the retracement from 5815 to 5637.In fact 5747 to 5751 looks to be an ideal sell zone.