Nifty reacted from the resistance zone of 5225-5265 as seen in the last post . The downside was not much and almost paired the losses completely. Now let us check the probability that may be unfolding in the short term -
The subwave B may assume any corrective pattern (most likely being a Triangle) . If it is a Triangle (Green count ) it may have completed its A and B and now trading subwaves of C.
If any other pattern is to unfold , it may be in its B subwave only and now in c-b-B. (Black count).
Now the Triangle probability suggests that its in c-C of it and a likely target of 5380-95 ( by c=.62a and blue count below ), from which a reaction for downside may come .
If we close above 5400 , we may be in a probable Flat pattern of the subwave C going for higher targets .
So in the short term :
If the last session low of 5165 holds and we cross 5246 , we may be going for the probable target zone of 5380-95 . A close above 5400 will be quite bullish for even higher targets. Downside below 5165 only . Caution is required in trading because of a B wave and its unassuming characteristics .