Elliott Wave Analysis of Nifty for 27 Feb 2015

| February 26, 2015

Today’s Elliott wave analysis report of Nifty for 27 Feb 2015 is not based on previous counts but is based on the smaller corrective wave pattern formed at the bottom today in last 30 -60 minutes of trade. Today I am going to show how even a small Elliott wave pattern can help you to identify a good next move of price.

It is not sure shot or mandatory that whatever I am showing in this analysis of Nifty will definitely happen but it will be a great learning lesson if this really happen in next sessions. Let’s see on Nifty charts:

Elliott Wave Analysis of Nifty for 27 Feb

Elliott Wave Analysis of Nifty for 27 Feb

This is 5 minutes time bar chart of Nifty showing move of last 2 -3 sessions. It seems an impulse completed from 8840 to 8674 as shown on chart by wave counts but main focus is on “abc” wave at last which broke previous low.

As you learned, Wave 2 can never break the start of wave 1. Only wave (b) is allowed to break the start of (a) and the pattern called Irregular Correction. As the last down move looks like an “abc” wave rather than an impulsive, there are possibilities for Irregular Correction here.

And if it is an Irregular Correction with Irregular (b) and there must be a sharp (c) upwards (may be with a Gap) to complete correction followed by next impulse downside which needs to break previous low again  as there is always a new impulse against corrective wave which needs to break the start of correction again.

61% retracement of impulse started from 8840 to 8674 is 8776 where as 123% and 161% projections of wave (a) for wave (c) are at 8745 and 8768 respectively. So we can expect the bounce till 8745 -8776 at least.  Most accurate levels can be calculated tomorrows during live market hours after identifying progressing waves.

Let me show you the formation of Irregular Corrective Pattern closely on separate chart:

Elliott Wave Analysis of Nifty for 27 Feb

Elliott Wave Analysis of Nifty for 27 Feb

This is again 5 minutes chart of Nifty showing today’s intraday move. The last move shown in red box is the main focus of this Elliott wave analysis report of Nifty for 27 Feb 2015 which looks like an Irregular Correction followed by start of new impulse.

Read the topic “Irregular Correction” in “Types of Corrections” in my book “Practical Application of Elliott’s Wave Principles by Deepak Kumar” to understand this Elliott wave analysis of Nifty.

Conclusion:

The set up on chart is suggesting a volatile move ahead consist of sharp bounce (may be with gap up) followed by decline below low again. This report and conclusion is for learning purpose to show how you can predict next move after identifying a corrective pattern even without seeing previous waves. But it is not necessary that whatever I explained will definitely happen as it is an advance analysis.

I am trying to show it because there is no importance if we identify a pattern after it happened, as anybody can mark waves and identify pattern that already happened but money can be made only if you identify pattern before it happens. So, my aim is to teach you how to identify moves before its start and nothing is better if we see it forming live.

So, never be disappointed if it fails. Just observe and make note of it.

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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 (7)

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  1. P.VISWANATHAN says:

    SIR, what is the price of ur book & how can i get it?

  2. Gaurav says:

    sir whats next? NF has broken all levels..

  3. Amit Jain says:

    very good analysis Deepal

  4. rajveer says:

    good stuff as always fundamentally markets do appear overvalued on a p/e basis and the macros don’t lend much support to such lofty valuations. So a massive correction is likely post the budget.

  5. KAMAL KANT says:

    It’s very accurate and precise

    Thanks Deepak,

  6. rashmi says:

    excellent analysis deepak!!!