India’s Sensex update

This is an update to our previous post: https://caldaro.wordpress.com/2010/12/01/indias-sensex/.

Nothing has changed longer term. India’s Sensex entered a multi-decade Cycle wave [3] in the spring of 2009. The current multi-year bull market is only Primary wave I of this Cycle wave, and we’re still expecting the Sensex to reach 34,000 during this bull market.

In the last report we anticipated a new uptrend coming off the Nov10 low. The uptrend did unfold, but it was only a B wave rally in a more complex (Nov10-Feb11) ABC correction. This correction was very important for the bull market wave count of the Sensex. Corrections often define wave structures in bull markets. As a result of this correction we updated our bull market wave count from a series of wave one’s to completed Major waves 1 and 2 in the spring of 2010. Major wave 3 began in May10 at BSE 15,960.

During Major wave 1 there were five Intermediate waves as noted on the weekly chart. Intermediate wave two was simple, but Intermediate wave four was an irregular complex correction alternating with Intermediate wave two. Major wave 3 completed Int. wave one in Nov10 at BSE 21,100 and recently just completed a complex Int. wave two at BSE 17,300. With a confirmed Int. wave three now underway, we can anticipate a breakout to all time new highs in the weeks/months ahead. Then a simple Int. wave four a few months down the road before an Int. wave five pushes the Sensex to even higher new highs to complete Major wave 3 of this five Major wave bull market.

Fibonacci relationships suggest this uptrend should top in a few months between BSE 22,400 (Int. iii = Int. i) and 25,600 (Int. iii = 1.618 Int. i). You can track the Sensex along with us by scrolling down page 7 using the following link: http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1606987. Best to your trading/investing.

About tony caldaro

Investor
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26 Responses to India’s Sensex update

  1. pankaj564 says:

    thanks !

    Like

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