With the index taking out the previous swing high of 9039 today , the wave count of a-b-c in the 4 th wave down assumes a higher significance. Index can still attempt slightly higher levels of 9300 (less likely) or close to it but if the labelling of a-b-c in wave 4 of larger A is correct, we might be staring at a final wave 5 down of A to finish wave A. Whether the above labelling is correct and where the wave 5 ends needs to be seen.
Today and tomorrow remain important days to figure out whether the above wave count is correct or not.
In all this up and down moves,some stocks have started showing good relative strength and may be worth keeping an eye on . Pharma as a basket seems good to look at, and within it, some stocks like torrent pharma, divis, dr reddys, cadila, ajanta, etc look better choices simply because most of them have been trading above their 200 dema since a long time. The other basket to look at could be speciality chemicals pack. With stocks like navin fluorine, deepak nitrite, basf etc. BASF seems to be making an attempt to come out of a bear market.
The purpose of this post is to keep a continiung watch on the earlier posted chart depicting elliot wave count of the downmove that has started since last month. And is for learning purposes only. As mentioned before, I remain on the sidelines in a wait and watch mode.