Elliott Wave Analysis of Nifty for 05 Dec 2014

| December 5, 2014

Nifty opened huge gap up today and again registered new all-time high just after opening but couldn’t sustained and declined back to 8526 again within next 60-90 minutes. Nifty rose gradually till 8575 after hitting low of 8526 and finally closed at 8564.

I was in wait and watch more from last 3 sessions as Nifty was not giving any clue for next move but now charts are giving the hints for new pattern and next move. Let us see on charts.

Elliott Wave Analysis of Nifty for 05 Dec 2014

Elliott Wave Analysis of Nifty for 05 Dec 2014

This is 15 minutes time bar chart o Nifty covering move from 8353. The move from 8353 to 8626 can be seen as 3 waves move with 2nd rise slower than 1st rise. 2nd rise slower than 1st rise is reducing the possibilities for wave 1, 2 and 3. So, it can be assumed as waves a, b and c if it is not 1, 2 and 3.

And, the decline before low of 8353 (from 8454-8353) was Complex Correction. So “abc” upside after Complex correction cannot be Irregular Correction.

Now, if this upside “abc” move is not Irregular Correction then there may be a start of big Ending Diagonal again and this upside “abc” move may be wave 1 of big Ending Diagonal Triangle.

If I am identifying it correctly then there may be an “abc” correction downwards from top (8626) that can decline till 61%-70% of wave 1 (from 8353-8626). 61% placed at 8457 and 70% placed at 8432 (marked with red lines).

We can identify wave (a) from 8626 to 8526 and (b) from 8526 to 8575 of the correction are already completed (marked with blue letters) and (c) downwards is pending that can go till 100%-138% of (a). 100% for wave (c) placed at 8475 and 138% placed at 8432.

Let us see decline from 8626 closely that we are assuming as “abc” correction:

Elliott Wave Analysis of Nifty for 05 Dec 2014

Elliott Wave Analysis of Nifty for 05 Dec 2014

This is 5 minutes time bar chart of Nifty covering move after high 8626. The decline from 8626 to 8526 can be identified as 5 wave’s move and can be taken as wave (a) followed by rise till 8575 that can be identified as 3 waves move and can be taken as wave (b). And wave (c) downward is pending that can go minimum 61%-138% of (a).

Conclusion:

If I am right at identifying and Nifty is at start of Ending Diagonal once again then Nifty can decline till 8475-8430 range followed by new high again. Selling or buying positions can be taken during market hours after seeing live waves.

Note:

As I mentioned earlier and in my Book, wave 5 as Ending Diagonal is very difficult to identify in advance and it often confuses. This report and assumption is for training purpose and is a try to find a pattern in advance observing the previous wave’s personalities.

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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"

Comments (1)

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  1. prashant bhatia says:

    Dear sir,
    Any change in count. Kindly update.
    Thanks
    Prashant