1) Wave 2 never retraces more than 100% of wave 1.
2) Wave 3 cannot be the shortest of the three impulse waves, namely waves 1, 3 and 5.
3)Wave 4 does not overlap with the price territory of wave 1
Rule 1 >> Wave 2 Retracement is only 38.2%
Rule 2 >> Wave 3 Longest among all 5 waves
Rule 3 >> Wave 4 Didn't Overlap Wave 1
Currently Price has...
Currently the price is moving in a channel
Election Results might skyrocket the stock price irrespective of the elected party
The price action of 16th May, 2014 (Election Result) will give you a clear picture.
200 day SMA and channel bottom support coinciding as shown.
A crucial level hence a bounce or break could be highly decisive in determining the direction of NIFTY in days to come.
For now we are on wait and watch mode.
It seems dollar may slide down, thereby helping Nifty again take short bull run.
Although Politics may play its role but still signs are of appreciating rupee.
It may have a minor negative impact on Indian IT Stocks.