Elliott Wave Analysis Report of Nifty for 12 June 2015

| June 11, 2015

Nifty opened Gap up, bounced till 8163 but traded with negative bias for rest of the day as expected in yesterday’s analysis report of Nifty and declined more than 200 points from day’s high. Nifty also broke previous low of 7997 and closed 159 points negative at 7965. Let’s analyze latest chart for further scenario.

Nifty Elliott Wave Analysis for 12 June 15

Nifty Elliott Wave Analysis for 12 June 15

This is 15 minutes time bar chart of Nifty covering move after 22 May’s high of 8489.

Now there is some clarity in counts from 8489. It seems an impulse is in progress from 8489 with inner waves 1, 2, 3 and 4 are already completed and last wave 5 is in progress as shown on charts. Wave 5 already achieved its minimum projection of 38% after breaking below 7978 whereas 61% is placed at 7864.

We can expect some bounce after completion of this impulse. The bounce may be till 38%-61% retracement of whole impulse started from 8489 or more which can be identified later.   But a bounce is not ruled out.

We need to see progress of wave 5 on separate 5 minutes chart to calculate nearest range for completion of wave 5.

Nifty Elliott Wave Analysis for 12 June 15

Nifty Elliott Wave Analysis for 12 June 15

This is 5 minutes time bar chart of Nifty showing move from today’s high 8163. It again seems an impulsive move with wave 1, 2, 3 and 4 are already completed and wave 5 is in progress. Wave 5 already achieved its normal projection of exactly 61% after touching 7958 whereas 100% is placed at 7900.

Wave 5 will be in extended zone after breaking 61% (7958) which further can show sharp recovery from lower levels after its completion. There is no sign of it completion till now.

Conclusion:

Nifty charts are suggesting that the completion of a downside impulse is near may be in 7958-7900 range, but below 7864 is rare case.  And we can expect a small or big bounce after completion of this impulse at lower levels. Minimum bounce may be till 8100 or till 8400 which can be identifying later after seeing pattern of waves.

So, any fresh selling at these lower levels may be avoided and best strategy may be to “Buy on Dips” with stop loss for minimum 150- 300 points from low in coming sessions.

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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"