NIFTY-Wave 4 may not have completed as shown above. The reasoning is that the last two waves are not convincingly impulsive (look more like 3 waves.)
Whatever the case may be, we PROBABLY will be going and testing the high made recently at 19992. (see the action in arrows above)
So we will probably be moving in a range as shown above for atleast a week. In the upper range we may break the 20000 barrier this time but then MAY fall again.
MY REASONING FOR CURRENT WAVE 4 BEING A FLAT
Flat did occur in the wave count of higher degree. Flats are corrective patterns that consist of 3 waves AB and C. In a flat correction B typically retraces a significant portion of wave A and wave C travels roughly the same distance as wave A.
As flat did occur in wave of higher degree (ending around middle of march), there will be a TENDENCY for the CURRENT WAVE 4 to be a flat too.
Although this is not a rigid rule , the current behavior does show the markets following the FLAT route.
WHAT ABOVE MEANS
We are in a bull run. Within this bull run, we MAY be consolidating in a range as shown above. Once this consolidation is completed we will resume our trajectory upwards.
NIFTY Opening On 31st July 2023