Elliott Wave Analysis and Further Updates on Nifty Movement for 24 May 2017 Onward

| May 24, 2017

Nifty opened flat at 9445 but failed to sustain at higher levels and declined sharply just after opening and traded with negative bias of rest of the day. Nifty declined by more than 60 points to register day’s low 9360 before closing 52 points down at 9386.

Yesterday, a decline below 9391 was expected and also suggested to Sell Nifty if conditions matched for same targets below 9391. But Nifty achieved targets at opening only and it may not have give chance to Sell. Let’s have a fresh look at latest charts for further scenario.

Today I am covering bounce from 19 Apr 2017 low 9075 and previous counts are explained in my earlier report Nifty can Bounce Sharply above 9377 for New High Again

Elliott Wave counts of Nifty for 24 May 2017

Elliott Wave counts of Nifty for 24 May 2017

This is hourly time bar chart of Nifty covering bounce after 9075 which I am expecting as start of new wave. This is the same chart with explanation which I had explained in my last analysis report because there is no major change in wave counts on this chart.

It seems an impulse is completed from 9075-9532 as shown on chart. Wave (5) of this impulse is highly extended with projected higher than 61%. Inner wave (v) of (5) started from 9372 is also highly extended.

23%-38% retracement of this whole impulse is placed at 9424-9357 which is the expected target range if I am right at identifying the pattern where 9424 is already achieved. On the other hand, start of extended wave (v) of (5) is at 9372 so Nifty has possibility to decline sharply till 9372.

But when we look at the decline from all time high 9532 then an (abc) correction seems completed which can take Nifty above new high 9532 again. So, let’s have a separate look at pattern of decline started from all time high 9532.

Elliott Wave counts of Nifty for 24 May 2017

Elliott Wave counts of Nifty for 24 May 2017

This is 15 minute time bar chart of Nifty covering decline from all time high 9532.

It seems an (abc) cycle completed from 9532-9391, an upward (abc) corrective wave completed from 9391-9498, again a downward (abc) corrective wave completed from 9498-9374 followed by smaller (abc) cycles again.

So, overall there are repeated (abc) cycles within this decline which is indicating the possibility of Complex Correction (most probably Triple Zigzag). And we need to wait for this expected Triple Zigzag Correction to initiate a good positional trade.

Otherwise, 38% retracement of very last smallest wave (c) is placed at 9387 as shown on chart. So, 9387 can be taken as breakeven point for intraday above which Nifty can bounce further towards 9436-9460.

Conclusion:

The decline from 9532 in Nifty is making the pattern Complex every day as expected and now there is possibility of Complex Correction on the chart. Either the pattern of decline can be progress of Complex Correction or Nifty can decline very sharply like crash. And we need to wait for this expected Complex Correction to complete to take a positional trade.

For Intraday, 9387 is the breakeven point above which Nifty can bounce further towards 9436-9460.

Trading Point of View:

For Positional, we need to wait for an expected Complex Correction to complete to initiate a good positional trade. There will be a good low risk trading opportunity if pattern really completes as Complex Correction.

For Intraday, Nifty if even touch 9388 can be bought with stoploss of 9369 expecting Immediate Targets 9436-9460. Try to book or protect profit with once Nifty enters is 9436-9360 range because there is still a possibility of Triple Zigzag.

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Category: Nifty

About the Author ()

Deepak Kumar is an independent Technical Analyst, regular practitioner and Trainer of Elliott wave theory applying Elliott's Wave Principles on Indian Markets successfully since 2011 and made many accurate predictions. He is also the author of book "Practical Application of Elliott's Wave Principles by Deepak Kumar"