Nifty was correcting in a zigzag fashion, and seems to have completed the correction. According to our EW labels we have completed wave II of {III}. So we are about to begin wave III of {III} the most dynamic phase of the advance. To confirm our view Nifty must take out two resistances namely at 5500 and 5630. Only then we can say with some confidence that we have embarked on the most dynamic phase of any impulse move. The corrective action so far is a bit complex so it can easily extend itself, and continue the slow grind downwards. We have three supports to look for entering on the buy side. 5285, 5255 and 5225. Below 5225 the chances of the correction extending increases. But if we take support at any of the above three levels and resume upwards, we are sure to see a protracted up move spaced with small corrective pauses.
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