Nifty have formed Zig zag pattern on weekly charts
This pattern started at the end of bull cycle making top at 6357 on jan 08 after completing 1st downwave at 4448 , the retracement wave was completed on 02 may at 5299 . The next major wave started from 5299 larger than jan fall till 3790 in month of july , Now we are in the retracement wave which has target of 4722 the 61.8 % retracement level as mentioned in my earlier posts also
Now according to this pattern ( elliott wave theory ) , the up rally is about to end …….yes this rally can be stretched to 4850 -4927 lvl by formation of extended waves which is quite possible , but the downwave sfter ending of this wave would more larger than last wave , which can possibly take nifty to 3300 or 3157 which is can be called as 50 % correction according to 8 year cycle n then lead to 62.5 % correction lvl at 3000 mark , where the correction may be completed according to theory.