Elliott Wave Analysis Report of Nifty for 05 March 2015

| March 4, 2015

Nifty opened 120 points Gap up today after RBI announce 0.25% rate cut but declined straightway after opening as I alerted in my morning Elliott Wave Analysis Report of Nifty Nifty Elliott Wave Analysis after RBI Rate Cut on 04 March.

I alerted for a sharp and quick decline and Nifty declined 220 points from high in single session. Nifty closed 73 points down at 8922 after registering high of 9117 and low of 8896. Let’s have a look on latest chart.

Elliott Wave Analysis of Nifty for 05 March 15

Elliott Wave Analysis of Nifty for 05 March 15

This is 3o minutes time bar chart of Nifty covering move after January high of 8996.

The whole pattern looks like a formation of 3 -3 -5 Irregular Correction where wave (B) exceeds beyond wave (A) and progressed exactly 123% of (A). I expected it in morning after doing Fibonacci calculation and seeing the personalities of move. Please read the topic “Irregular Corrections” in my book “Practical Application of Elliott’s wave Principles by Deepak Kumar” to understand it and to know its effect and nature of next wave.

If this is really a progress of Irregular Correction then after Irregular (B), wave (C) must go at least 61% of (A) which is placed at 8793. Whereas, 100% and 123% for wave (C) are placed at 8596 and 8470 respectively. On the other hand, we can always expect (C) to cross the end of (A) which is at 8473.

Other possibility,

The “abc” move from 8473 to 9117 can also be wave 1 of new Ending Diagonal. But, in this case also, we can expect Nifty to decline till 8752 at least for wave 2. Progressing waves will show the exact pattern but personality of today’s decline is suggesting it as Irregular Correction.

Let have a look at today’s decline from 9117 on 5 minutes chart to see its progress.

Elliott Wave Analysis of Nifty for 05 March 15

Elliott Wave Analysis of Nifty for 05 March 15

This is 5 minutes time bar chart of Nifty showing move after today’s high 9117 which I am expecting as the start of wave (C) downwards. Most probable wave’s counts suggests that wave (C ) is somewhere within inner wave (iii) of (3) which further suggesting more decline pending in coming sessions. And our stoploss for exiting shorts should be above 38% -50% retracement of wave 3.

I am not explaining the counts and just marked on chart. Try to identify counts (inner waves) and also calculate the Fibonacci retracements and projections for every wave if possible. Refer the book wherever you feel doubt. It will help you learn faster and develop identifying skills.

There is small Triple Zigzag Correction show on 5 minutes chart for wave (ii) of (3). See the nature of move after breakout from a Triple Zigzag. Price never entered again inside wedge after breakout. There was great opportunity to sell with just 10 -12 points stop loss. I personally traded this breakout with 9000 put in 1000 quantity with 5 points stop loss and booked half with 70 points profit and still holding 500.

Read about Triple Zigzag Corrections at Triple Zigzag Correction of Elliott Wave Theory Explained by Deepak Kumar

Some of these jackpot Elliott Wave Patterns like Triple Zigzag, Leading Diagonal, 3-3-5 Flat Correction, 3-3-5 Irregular Correction etc can give you huge profits with smallest risk f you identify them at right time. You can trade your full quantity on these  pattern because your stop loss is really small and reward is really high. Today I took Rs. 5000 of risk and riding Rs. 60000 of profits.

That’s why I never give trading advice and force you to learn yourself. Because good opportunity comes only for a while and it is only you who can identify it at time.

Conclusion:

Current Scenario on charts is suggesting more declines at least till 8793 and can also go below 8473 which can be identified later after seeing progressing waves. But never be over confident and always ride the trade with stop loss and stop loss of existing short could be above 38% of wave (3).

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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 (10)

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  1. Rajeev mittal says:

    Dear Deepak ji I read in a book that if wave a is 62 % than wave c will failure and will be 61.8% of A. what u say

    • Deepak Kumar says:

      Dear Rajeev Mittal Ji,

      There is no such rule in my book. I have seen many time (a) retracing 62% and (c) also retracing 100%. It depends on how deep (b) corrects the (a).

  2. Ghanshyam says:

    After 8880 today abc pattern or 1 2 3 4 wave made?

  3. Ghanshyam says:

    make new low below 8880 next session?Sir!

  4. V.K.Malhotra says:

    Dear Deepak,

    I am trading in the market for the last 10 years, Very rarely may be two or three times I have seen somebody making exact prediction on market. You are one of them.I came to know about your site only on 3rd March. On 4th I checked. and in Mid session you gave another update. I am particularly impressed by that.
    Your interim update shows your value system and commitment towards profession you have chosen and interest in your followers/students well being in financial market. Please never loose this value. People will return your wisdom and sincerity many folds without asking.
    My interest in market is huge , I am very senior independent trader. I respect professional like you.
    Thanks

    Vinay Malhotra
    Chandigarh

  5. rajveer says:

    Are there any bearish divergences?, Global markets appear to be starting a leg down and we sold off on good news yesterday

    • Deepak Kumar says:

      Dear Rajveer,

      I follow only Elliott Wave Theory and not any single other Technical indicator, news or data. I am see the formation of Irregular Correction pattern here which is highly bullish in nature.

      But in Irregular Correction, 1st we see a quick and Sharp fall followed by great recovery above high again.

  6. hiren says:

    Which bar we have to look generally. 5 minutes, 30 minutes, or 1 hour.?