What we now see, is that the abc correction by not breaking the trendline drawn, had become an x wave and so we have another abc correction unfolding.We had completed a and we are currently in the corrective mode, b. We still have one large c up move way to So we continue to hold Nifty buy positions till we see a decisive break down below the 0- b trendline.
Let us look at the cycles...
We see a possibility of a reaction, a buy on dips kind of reaction which could move the market further higher.In other words the c wave could be a strong one coming before the final fizzle takes place.
We have several significant planetary aspects this week:
1. Mercury turns direct.Uranus has turned retrograde on July 17th.Both planets came close to forming a square and are now moving away from each other.
2.Mars conjuncts Jupiter.Rahu is trine Mercury and the Grand trine involving Jupiter, Saturn, Neptune and Mars is still in vogue.
3. Rahu moves to Rahu star. We already have Mars, Mercury, Jupiter and Saturn in Rahu stars.
4. Rahu is also the cuspal star lord for 3, 7 and 11th cusps.
5.July 22nd is a Full Moon, Moon Perigee and a Minimum Declination day.
6. July 23rd is a Maximum Latitude Day.
7. By 25th July, Venus will oppose Neptune and Mars will oppose Pluto.
8.By July 26th, Sun will square Saturn
Additionally we are in the middle time period of Venus Antara Saturn Sookshma.
So what do we understand from all this?
Will it mean that the prices will fall into sub 5400 yet?
My take is not yet.
Reason is because of the following observations.
Nifty had never reacted significantly ( a sustained downtrend) when fast moving planets were moving in the houses of Cancer, Leo and Virgo.These three houses offer a sort of continuation of the existing trend. So the next real down trend could commence only when Venus conjuncts Saturn and Rahu in Libra followed by Sun conjunction with Saturn and Rahu.These are slated to happen post September 17, 2013.
So, even with dips, Nifty may continue to rise till September 17th ...
Putting it all together, Nifty may first go up and then react. On July 29, a bigger reaction could set in. Even that could be shrugged off and Nifty may move forward to its tryst of Saturn and Rahu. That rise could be the result of the Grand Trine.After which the Jupiter-Pluto-Uranus squares will inject reality into markets.
With so much aspects and signatures, we will closely follow the developments on a day to day basis.
Happy and careful trading.