BSE Auto

The BSE Auto index is steadily inching higher after taking support at the 40WEMA. The wave count suggests that a larger degree wave (3) has possibly started as the weekly momentum indicator has given bullish crossover after completed its pullback cycle. Now if wave (3) does the equality level of wave (1) then the upside level works out to 54230 which might look absurd at this point in time but that is what the chart is suggesting. Wave (3) is likely to have subdivisions as it unfolds and that would mean that we might see minor degree corrections in the BSE Auto index from time to time. On the way down, 20WMA and the 40WMA are currently pegged at 23227 and 22357 respectively and these key moving averages shall provide support in case of any correction/consolidation.