Nifty-The markets corrected as predicted. However, the correction may be a bit deeper considering all parameters. I have changed the wave count slightly and now wave 4 coming down FOR THE WHOLE HEIGHT from the low of 16800. I have marked a conservative level as the orange rectangle for the ongoing correction
OBSERVATIONS for waves marked in red.
1. Wave 3 is slightly larger than Wave 1
2. Wave 5 is yet to come which may be the longest.
3. The present correction into wave 4, may be a single zigzag. Whether the correction will be a double or triple zigzag, we can only decide once the levels indicated by the orange rectangle are reached.
EFFECT OF FITCH DOWNGRADING USA ON ELLIOT WAVE COUNT
One needs to be always wary of sudden and adverse geopolitical news. World events such as political tensions, wars, or economic sanctions can disrupt the ongoing wave count to some extent. Although the die-hard proponents of the elliot wave analysis go so far as to state that the wave count foresees everything, it is my belief that the IMMEDIATE wave count does get affected, though the larger picture remains the same.
A sudden world event can have an effect on volatility (increased), breakdown of immediate patterns, interest rates, safe haven flows. These cannot be discarded.
NIFTY Opening On 3rd Aug 2023