The current bounce appears to be suggesting a 4th wave of an impulse wave is likely in progress. We need to see 9 swings for an impulse wave with one extended wave, so the better look and preferred idea is to see a new low for both the Sensex and Nifty. A move back below 37000 is needed to support further weakness for wave [d] of the triangle idea.
The alt idea for wave 4 is to see a bit more upside towards 37800, to end a 3 wave bounce from the Aug lows followed by new lows under 36000 to end wave 5 and complete a large impulse wave from the Jun 2019 highs, it’s then I would suggest investors could look to turn bullish as a large rally in 3 waves to correct the current decline would be expected to develop from below 36000.
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