4825 broken

The Nifty had a bounce yesterday which retraced 23.6% of the fall. The index has broken the low of 4825 today which indicates that it’s trading in wave five down on the daily charts. If today’s low of 4767 is held, then there will be a three-wave corrective rally on the upside. The momentum indicator on the hourly charts is in oversold region, signaling that wave five may end today. So, till we get a positive close on the daily charts the downside continues in wave five and a positive close will lead to a bounce back. On the hourly charts, the KST momentum indicator has given a negative crossover and is trading below the zero line. The Nifty is trading below the 20-HMA and 40-HMA, ie 4890 and 4993 respectively, which are now resistances in the short run. The market breadth is negative with 186 advances and 1,125 declines.