Jackpot Trade No.1

16.8.2012 (9.50AM)

L & T is offering a huge opportunity.
I see it developing as per following charts:

As A=1442-1308=134

B cannot go above 138.2%=185=1493

My recommendation is to short it in 1468+ zone with stop-loss at 1495 and target sub 1300

EOD 16.8.12
It made a high of 1481 and while making this top,Hourly RSI-14 showed negative divergence in overbot zone. This combined with EW counts was a good sell signal for me. Stop loss for shorts at 1495

EOD 17.8.12 update

It turned out to be a perfect trade initiation.
However,uncertainty in Nifty had put a question mark (in my mind)on this downmove continuing on Monday.
Although the channel has not got breached but EW calculation of WXY and then Yc tells me that  the downmove continued today may very well continue on Monday too--a Trailing stop-loss at 1468 is must for all shorts.If it gets triggered then we may see 1485 again:

A look at daily charts is also required:

On daily charts,5DMA has not yet been breached-- and that tells one how early birds have enjoyed the fruit 

5.9.2012(EOD)
We are now coming close to the wave end.

As mentioned in 16.8.12 post,this C is expected to go below 1300 as a 5 wave form.

On having a closer look,I feel this C has done:
(i)=1482-1430=52
(ii)=1430-1472=42
(iii)=1472-1324=148
(iv)=1324-1372=48(ending at 1369.85)
(v) in play--- can do max 1.6x(i)=83=1286
Today it did 1370-1320*=50

So now we may be very close to the down-wave's end---
Is anyone carrying shorts????
Not me---but it did turn out to be quite a Jackpot ---at least academically.

EOD 07-09-2012 

As mentioned in 5-9-12 post,the downwave is done.Though instead of finishing below 1308--it finished at 1309.05. And as C ended at 1309.05 and did not go below A(whose low was 1308),technically it would be termed as a Truncated C resulting in a very fast upmove---

And thus starts our Jackpot Trade No.3