21 Jul 2021 ● 05:13 AM
After the wedge-like formation I was bending towards wave 5 up starting for the Auto index, but I have second thoughts. The market has become narrow and the NIfty reflects that. Not all sectors participating. Thus auto stocks may underperform for longer than expected. The BSE Auto index wave counts have been marked to complete a 5 wave advance inside the previous rising channel. This change means that the falling wedge is a leading diagonal in wave A of a correction in a larger wave 2 circle. A third wave down in C may therefore be pending for the Auto stocks. Any bounce in the Auto index could be part of the B wave and may find resistance near the trendline of the X wave highs at 24177.