Elliott Wave Analysis Report of Nifty for 02 Sep 2015

| September 1, 2015

This Elliott Wave Analysis Report of Nifty for 02 Sep 2015 is same as I sent to my clients/subscriber and students. I am posting it same as sample and I got many requests for trials and sample reports. Those who want trials can check these reports to make their decision.

Nifty opened gap down today at 7907 and declined till 7886 followed by a mild recovery up to 7929 but declined below opening price again without filling gap and traded with weakness for rest of the day fall more than 250 points from previous close. Nifty bounced 50 points from lows in last minutes of trade before closing huge 185 points down at 7785.

Nifty moved exactly as per our expectation and expected minimum downwards levels of 7914-7883 were achieved at opening only without breaking above 7998 where we needed to watch latest wave’s pattern. Nifty opened gap down at 7907, as gap and steepness is the personality of wave 3 we could always expect one more down leg after an upside correction to complete wave 5 downwards.  Refer the topic “Reading Gaps and Steep Waves” in Chapter 9 (Mandatory Rules, Exceptional Rules and Observations) of my book.

On the short term view, we were already expecting a minimum dip below 7669 from 8037-8098 levels of 28 Aug 2015. Read report Nifty Elliott Wave Analysis and Outlook for 28 Aug 2015. Nifty achieved 7746 till now, and let’s have a look what latest wave’s pattern is suggesting.

Elliott Wave Analysis of Nifty for 02 Sept 2015

Elliott Wave Analysis of Nifty for 02 Sept 2015

This is 30 minutes time bar chart of Nifty covering move after July 2015 high 8655. Still there is no change in wave counts in this chart as the move from 8655-8321-8621 can be waves (A or 1) or (B or 2) and (C or 3) may be started from 8621.

Within wave (C or 3), wave (1), (2), (3) and (4) are already completed where as wave (5) is in progress from 8091.  Minimum 38% projection for wave (5) is at 7762 which is well above (7669) end of wave (3). But (5) needs to complete below end of wave (3) to avoid 5th failure so minimum 7669 we can expect for wave (5) whereas 61% projection is placed at 7502 which is also achievable.

Now, let’s have a look at progress of wave (5) on separate 5 minutes chart:

Elliott Wave Analysis of Nifty for 02 Sept 2015

Elliott Wave Analysis of Nifty for 02 Sept 2015

This is 5 minutes time bar chart of Nifty covering decline from 28 Aug’s high 8091 Which I am expecting as start of inner wave (5) of (C or 3). It seems wave (1) and (2) are completed and (3) is in progress.

And within inner wave (3), it seems inner wave (iii) is completed and (iv) may be completed at 7804 or may complete somewhere in 7816-7859 range. Inner wave (iv) is near 23% whereas 38% is placed at 7859.

So, wave (v) of (3) needs to break below 7746 again and can further go till 7691-7622 which is 38%-61% projection of wave (v) calculated from 7804. These calculations may change if wave (iv) complete above 7804 respectively.   Stoploss for positional/existing shorts must be above 7861 now which is 38% retracement of inner wave (3) of bigger (5) till now.

Conclusion:

As I am already mentioning from last 3 sessions, by analyzing conditions on all the charts, levels of 7669-7502 looks possible in coming days but immediate stoploss for positional/existing/fresh shorts must reduce to 7861 now which is just above 38% retracement of wave (3). Stoploss can further reduce to 7807 if Nifty break below 7741.

Conditions are still “Selling on rise”. We need to see latest wave pattern if Nifty managed to break above 7861 now.

Never over trade and never trade without stoploss as huge volatility can result in heavy losses if we go wrong. Small traders should try to be strict to intraday trades only. Try to take fresh trade as close to stoploss as possible.

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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"

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