Elliott Wave Counts of Nifty for 27 May 2016 – Example of Waves Cycle

| May 26, 2016

Nifty opened gap up today at 7974 followed by a mild decline till 7949 but traded with huge strength for rest of the day. Nifty bounced more than 140 points from previous close to register day’s high 8083 before closing 134 points up at 8069.

Yesterday I explained that there are repeated waves 1 and 2 at bottom deeper till 4th degree, so nifty needs to complete waves 3, 4, and 5 for every 1 and 2 which may take nifty higher above 7992 but exact top cannot be calculated. Nifty broke above 7992 and even bounced almost 100 points above 7992, so analyze latest charts to see if we can identify something.

Today I am showing move only after 24 May 2016 low 7715 as previous waves are not completely clear and possibilities I have explained in my previous analysis report Elliott Wave Analysis Report of Nifty for 26 May 2016.

Elliott Wave Counts of Nifty on 5 minute chart

Elliott Wave Counts of Nifty on 5 minute chart

This is 5 minutes time bar chart of Nifty covering move from 24 May low 7715 which looks like sharp impulsive move without any reasonable correction in between. I have shown most probable wave counts but I here is not even a 23% correction in this whole bounce.

There are repeated upside impulsive followed by correctives at bottom which can inner waves 1s and 2s deeper till 4th degree. If these repeated impulsive and correctives are waves 1 and 2 then Nifty needs to complete waves 3, 4 and 5 for every 1 and 2.

So, it seems this impulse is still within its bigger wave (3), and that wave (3) is in its inner wave (v), and that inner wave (v) is also within its inner (5). Please look at the chart carefully and try to understand wave counts.

Inner wave (v) of (3) already achieved minimum 38% projection after breaking above 8050 whereas 61% projection is placed at 8112. Nifty can give 23%-38% decline as wave (4) after completion of wave (3) at higher levels, may be around 8012.

Learners please look at every bigger as well as inner wave count on chart carefully and try to understand especially those who are not able to understand the concept of Wave’s   Cycle yet.

Let’s have a separate look at very last impulse started from 8009 which I have shown as start of inner wave (5) of (v) on above 5 minutes chart.

Elliott Wave Counts of Nifty on 1 minute chart

Elliott Wave Counts of Nifty on 1 minute chart

This is 1 minute’s time bar chart of Nifty covering move from 8009 which I have shown as start of inner wave (5) of (v) on first 5 minutes chart.

It seems inner wave (iii) completed at 8083, (iv) completed at 8069 and 38%-61% projection for wave (v) is placed at 8097-8114 as explained on chart. If the counts I am identifying are correct then Nifty can show small or big decline after completing this impulse around 8114.

Learners needs to look and understand that no matter if it is 1 minutes chart, 5 minute chart, hourly chart, daily or monthly chart, rule, structure and pattern of waves are same on every time frame chart. See even on 1 minute chart, pattern of waves are exactly same. If you understand this concept of Waves Cycle then 50% of your confusion regarding Elliott Wave Theory will be solved.


This analysis report I posted on my blog just for the future reference of my students and book subscribers as there is a good example of Waves Cycle in this report. I am not giving conclusion here as complete report with conclusion is sent to my existing subscribers only.

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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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