Elliott Waves Analysis Report of Nifty for 02 Sept 2014

| September 1, 2014

Nifty started new month with huge Gap up and closed at record life time high. From last 12-14 session Nifty is giving gap opening and not giving and perfect opportunity for day trading. Today also Nifty opened Gap up and moved in 20-30 points range whole day.

Though, Nifty is hitting new high every next day but not showing any sign of weakness yet.

Let’s see the further probabilities of Nifty on Charts: –

Elliott Wave Analysis of Nifty

Elliott Wave Analysis of Nifty

This is hourly chart of Nifty showing whole move from 7540 to till date.

Here, straight and sharp move from 7540-7919 looks like wave 0-3 seeing gaps and its steepness followed by a minor correction of 72 points and further move from 7857 can be seen as wave 5 as labeled on charts.

If I assume move from 7540-7919 as waves 0-3 and 7857 as end of wave 4 then projection of wave 5 can be assumed as shown on chart.

  • 38% for wave 5 is placed at 8001 which is already completed.
  • 61% is for wave 5 is placed at 8091 which is possible.
  • 100% for wave 5 is placed at 8236 which is rare case.

Wave 5 can rise till 8091 (61%) comfortably but any level above 8100 should be taken with cautions for bulls.

Let us see Today’s Intraday Move: –

Elliott Wave Analysis of Nifty

Elliott Wave Analysis of Nifty

This is 5 minutes chart of Nifty covering move from 7940 to today’s high.

Move from 7940 to 8023 can be seen an impulsive but again Gap has some confusion. And today’s consolidation between 8023-8006 can be seen as “abc” correction that is almost flat.

After completing wave “c” at 8006 Nifty completed a wave diagonally from 8006-8025 followed by 50-60% correction till 8015.

That is the reason why I given buy call in Nifty at 8018-8015 with stoploss of 8005. Though it was risky to give buy at all time high just before closing but seeing the 100% rise in Nifty 8000 Put Open Interest where 17 Lakh new contracts are added followed by identification of wave 1 and 2 I thought of taking risk.

Now, after completion of wave 2 at 8015, next move is difficult to identify at present. It also seems like diagonal but as per EWT, wave 3 must be a clean impulse. May be we will see clean pattern tomorrow.

But roughly, by seeing the wave 1 of about 20 points we can expect minimum up move of 50-60 points started from 8006 if Nifty saved 8015 spot tomorrow.

Trading Strategy:

We are holding longs taken today at 8018-8015 spot levels and will hold with stoploss 8015 (end of wave 2) tomorrow. We will trail stoploss tomorrow or will book profit around 8055-8091 levels. We may book profit early also seeing conditions during market hours and will try to complete first trade of this month in profit.

Strictly exit this trade if Nifty even hits 8015 spot tomorrow morning.

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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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