Nifty opened flat today at 7745 and registered low of 7733 but bounced from lower levels and traded with strength for rest of the day to rise more than 100 points from day’s low. Finally Nifty closed 72 points up at 7834 after giving high of 7840.
Yesterday I suggested to buy Nifty if trades above opening price continuously between 9:30-9:45 AM using stoploss of low expecting minimum upside targets of 7811-7852. Nifty opened at 7745 and traded in 7750-7765 range between 9:30-9:45 AM and then bounced till 7840 without breaking low. It was a low risk trade with 20-25 points stoploss for minimum 55-90 point’s profit. Let’s have fresh look on latest charts.
Today’s I am showing wave counts from 11 Dec low 7551 as previous counts are same as I explained in my previous report Elliott Wave Targets of Nifty for 17 Dec 2015 after Fed Meet.
This is 5 minutes time bar chart of Nifty covering move after Monday’s low 7551. It seems,
- Wave (1) completed from 7551-7663.
- Wave (2) completed from 7663-7595 as simple (ABC) which retraced exactly 61% of (1).
- Wave (3) may be completed from 7595-7852 which is highly extended.
- It may be completed from 7852-7733 which retraced just above 38%.
- Now wave (5) need to project minimum 38%-61% and needs to break above 7852 (top of wave 3). 38% projection for wave (5) is already achieved but wave 5 needs to break above 7852 at least whereas 61% projection is placed at 7919.
So, we can expect minimum 7852-7919 on upside followed by a correction again. Now, we needs to analyze wave (5) separately to calculate its maximum limits or completion range.
This is again 5 minutes time bar chart Nifty covering bounce after today’s low 7733 which I am expecting as start of wave (5).
It seems waves (i), (ii), (iii) and (iv) are completed till 7794 and wave (v) is in progress as shown on chart. Wave (v) needs to break above 7852 (top of wave 3) at least which is already above 61% projection. Whereas, 100%-123% projection for wave (v) is placed at 7876-7895.
Wave (v) will be in extended zone after 7844 so Nifty can decline by 100-180 (38%-61% retracement of whole move from 7751 to latest high) points from 7852-7876 range.
By seeing latest wave patterns on charts, Nifty have possibility to break above 7852 but there are cautions once Nifty break above 7852. Nifty can decline minimum 100-180 points after breaking above 7852 may be from 7852-7876 range or from 7895-7919 range in case of highly extended wave (5).
So, Nifty can be sold in 7852-7876 range with stoploss above 7895 expecting minimum 100-180 points on downside.
Nifty can also go to 7895-7919 in extreme condition but buying must be avoided even if stoploss hits, Nifty have possibility to give a decline of minimum 100-180 points without breaking much above 7919. Exact range for reversal can be calculated tomorrow only after seeing latest waves, those who have gained some knowledge of EWT can sell after identifying completion of wave (5) above 7852 as impulse.
Any trade and stoploss can be decided only during live market hours after seeing latest waves pattern tomorrow.
Click Here to Learn Practical Application of Elliott Wave Theory in real time trading/investment from the deep experience and true knowledge of Deepak Kumar .
Click Here to subscribe for Daily Elliott Wave Analysis Reports of Nifty with Stop loss and Trading Strategy by email.
- Why You Must Learn Elliott Wave Analysis from Deepak Kumar
- Does Elliott Wave Theory Analysis Works for Intraday Trading
- Effect of Important News and Govt Policies on Elliott Wave Theory Analysis
- Free Live Charts to Use for Elliott Wave Theory Analysis
- How to Label Elliott Wave Counts Perfectly and Accurately – Tips and Tricks by Deepak Kumar