Sensitive Index

Re-assessing the Sensitive Index from a wave perspective reveals that the rise from the March lows of sub 8000 has progressed in a 5 wave sequence. If the above wave count is right, then the impulse wave which tracks the direction of the larger trend may have possibly given over at 17530, paving way for the 3 wave corrective A-B-C decline to complete a typical 8 wave sequence. The A and B sub-wave seems to have been done, which leaves the final leg, C corrective pending.


The nature of the corrective pattern could emerge as a “zigzag” or a “flat” - the former retracing a lot more of the previous 5 wave than a simple flat.

While much of the investor class would be better disposed with a flat corrective, the odds may be stacked in favour of a ‘zigzag’ type – for the simple reason, there is also a gap which the market will need to fill, namely the ‘gapped up’ price move after the UPA thumped majority. While some pain is in store in the near term, the good news is that when this corrective wave has given over, it may be the next Big opportunity as the next 5 wave impulse sequence of a larger degree may be about to begin which has the potency of taking the index to new highs above 21000.


The only hitch will be if the index falls below the start of the wave 1 ( i.e. below 8000 again ) for then, the above count would stand negated.