Elliott Wave Analysis Report of Nifty for 09 Jan 2015

| January 8, 2015

Nifty opened huge gap at morning and traded with strength whole day after initial decline of 40 points. Nifty bounced to register the day’s high 8243 from morning low of 8168 and also closed near day’s high. Closing near day’s high is a sign of some more upside. Let’s see what charts are suggesting.

EW analysis of Nifty

EW analysis of Nifty

This is 5 minutes time bar chart of Nifty covering move after 8445 which I am assuming as start of wave (C) of “Irregular Correction”. Read Elliott Wave Analysis Report of Nifty for 08 Jan 2015 for complete details. It seems wave (C) completed from 8445 to 8066 with,

  • Wave 3 exactly 361% of wave 1
  • Wave 5 just above 61% extension

Next move after yesterday’s low 8066 which we were expecting as “123” or “abc” is now showing the possibilities of an impulse rather than “abc” as wave 3 gone well above 161% and still there is room for upside. We need to see move after 8066 closely on separate chart.

EW analysis of Nifty

EW analysis of Nifty

This is again 5 minutes time bar chart of Nifty covering mover after yesterday’s low 8066. It seems,

  • Wave 1 completed from 8066 to 8138 as Impulsive
  • Wave 2 completed from 8138 to 8087 as “abc” corrective that corrected wave 1 by exactly 70% which I mentioned in yesterday’s report as good buying opportunity with small stop loss.
  • Wave 3 seems to be in progress and is within its inner wave (v). Wave 3 already projected above 161% till now. Inner wave (v) of (3) also projected till 61% till now and 100% placed at 8286. Wave (v) of 3 is already extended but we should not limit the wave’s extensions within wave 3 as I mentioned in personalities of wave 3 that “We should not book profit during the progress of wave 3”. The best strategy is to keep trailing stoploss below 38% of the progress of wave 3.

Wave 3 here started from 8087 and progressed till 8243 and 38% retracement of this move is at 8183. So, stoploss for any exiting longs should be just below 8183.

Conclusion:

The setup on chart is suggesting more upside. Any fresh trade can be taken only during market hours after identification of latest waves and stoploss for any existing longs should be below 38% retracement of wave 3 as wave 4 rarely corrects more than 38% after extended wave 3.

Best Trading Opportunities:

The best trading opportunities are only at the progress and wave 2 or at start of wave 3 which gives great rewards for smaller risk. Wave 3 can be inner wave of any small, big or bigger higher degree wave. We must wait for it with patience and then need to hold nerves to take action when we identify it. Trade can go wrong and stoploss may hit but you will never lose in long run if you trade with discipline.

One more General Important Note:

Whenever you see price is closing at day’s high after a good bounce then always expect a gap up or some more upside next day especially if volume increased at closing. And if you see price is closing at day’s low after a good decline then always expect a gap down or some more down side. Keep observing it is future and it will help you to hold overnight trades.

This EW analysis report of Nifty is a part of 02 months FREE service for my book subscribers.

EW add 2

Tags: , ,

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)

Trackback URL | Comments RSS Feed

  1. sathis kumar says:

    sir,
    your reports are very correct.
    good luck
    sathis