Markets are poised for bounce back upto 5070

In the Figure below as you can see it looks like Nifty has completed the 3rd wave (shown as bold number) of the downside Impulse move and headed upwards to form the Corrective 4th Wave (shown as bold number). If this analysis holds then nifty is about to retrace 38.2% of the completed 3rd wave which comes approximately at 5070 as shown in the second fig below.

 

Also the Interesting thing is that the 61.8% retracement of the 5th wave (shown as normal number) of the Larger 3rd wave(shown as bold number) also comes near the 5070 Level as shown in below fig.

Which confirms the Min upside as per the above analysis using EWT is 5070. This is because the direction and magnitude of the movement of the market is always inclined towards the direction and magnitude where more Fibonacci relations are fulfilled.

Overall one can easily go long at the current nifty levels with a Minimum target of 5070.
Also one has to note that the maximum upside for the nifty is capped at 5350 which is the termination point of the 1st wave which the 4the wave should not retrace as per EWT.

Note: The Wave numbering is been altered a little from our previous analysis mainly on the 5th wave of the 3rd wave respecting the markets flexibility to create alternatives.