Nifty Astro Technicals October 08 to 12, 2012

The freak trade on Friday has wreaked havoc on the internals of the market structure and cooled the bull fervor to some extent. Since everything which happens in the market is part of market reality we accept the situation and move on to our analysis.

Last week we had seen Wave 3 gathering strength and wanting to push ahead. We had expected the third wave push to continue till October 10^th.However now, after Friday`s price action it looks like Wave 3 has terminated and wave 4 has opened downwards. In fact even minor wave a of 4th looks completed. Currently minor wave b of 4 seems to be on. Further analysis is possible once we see how strong or weak this wave b is. Since wave 4 is now overlapping wave 2 territory in the Minor leg up, we need to be careful about the possibility of a terminal impulse manifesting.  If we consider wave 1 as elongated, then wave 5 should confine itself to 5800 or even less. The ensuing correction could pull down Nifty to 5640 levels, the beginning of minor wave 1, in wave 4 of one larger degree. In this case, once wave 5 is formed, then the correction to 5640 levels should happen in 50% of the time taken from wave 0 to 5.

 Let us see the larger picture. See daily chart below:

The thick blue lines indicate that wave C of diametric D, which began on June 04^th, is close to achieving equality   with Wave A of diametric D which began on Dec 20^th, 2011.This may happen if Nifty reaches 5872.Time wise, wave A had taken 45 trading days and wave C would have consumed 89/90 days by the time band Oct 10 to 12.

The green square high lights the movements of Irregular Flat with C wave failure of wave 2 of C. The Neo Wave projection of 161.8% of wave 3 of C, because of this Flat formation is 5890. So the price band 5872-5890 appears crucial. This is just 126 points away from Friday`s closing.

But the freak incident on Monday has confused the picture and we see the emergence of a terminal impulse in the minor formation. According to this Nifty may not move much above 5800.See the 15 min chart. Again this was caused by an abnormal market movement and the market is likely to reject this outcome. We will know this only on Monday, October 08, 2012.

If this is so, then we look for an up move towards 5872 area. If not, we should know at the 5774 area itself. In that case, we look to go short around 5774 region for a play up-to 5640 initially. This could tentatively go up to 5530 levels. This may possibly conclude wave 4 of C after which we still expect one more up move towards 5975 levels which could be wave 5 of corrective wave C of diametric D. Why 5975? Because 5975 represents 80% of the retracement from November 08^th  2010 top of   6335 to December 20, 2011 low of 4531..

What do the stars say?
As indicated on the declinations chart last week itself, Moon has been showing reversal signs from October 5 itself. Moon reaches its minimum Latitude on October 11^th and MOON`S declination crosses Celestial Equator on December 12^th.Both of these signatures are reversal signs.

The Sun-Pluto waning square of September 29, will begin to have its reversal effect between Oct 09 to 12.The Venus Neptune opposition of Oct 04,will manifest negatively before Oct 16.Jupiter had turned retrograde on Oct 04th.We expect a powerful reversal from a crest, on Oct 11th.Mars Neptune waning square of Oct 08,may affect markets negatively between Oct 12 to 17th.Sun forms a waxing trine with Jupiter on Oct 09th.Powerful reversal effect from crests is expected between Oct 12 to 19.Venus and Pluto form a waxing trine on Oct 09, 2012.

As we can see, most of the aspects which have formed in the immediate past or which are about to form in the near future seem to indicate reversal from crests. The common central time band seems to be Oct 10 to 12.

Daily planetary positions have been indicated in the tabulation below, with universal color coding symbolizing the effects expected.

Please see the planetary effects of corrections in the overall context of bullishness, as depicted by the wave patterns.Please note that all that has been discussed above are only conjectures. Price movements alone are supreme and will dictate the future progress of Nifty. It is not prudent to open positions, in anticipation. Neither is it safe to operate without stop losses. Let the price tell us what it intends to do. The studies merely help us to be prepared.Have a wonderful week of trading, without any freak incidents!