Elliott’s Wave Analysis Report of Nifty for 19 Sept 2014

| September 18, 2014

Nifty again surprised many traders by very sharp bounce of more than 100 points in 20 minutes. After Gap down opening in the morning, nifty bounced sharply in first hour of trade and was positive throughout the day. That was the reason I was not confident about the trend. Data and charts were suggesting levels above 8000 but Nifty stayed below 8000 for 2 sessions.

Now let us see the further road map on charts: 

Elliott Wave Chart Analysis of Nifty

Elliott Wave Chart Analysis of Nifty

Yesterday I mentioned that the move after hitting low of 7925 was not convincing for complete wave 1 and 2, as next wave 3 is not expected to slower than wave 1. I was right, wave 2 was not completed and it was just “b” completed at 7980 and “c” completed today with gap down followed by sharper and faster wave 3. You can see that wave 3 is faster than wave 1. 

But if you see the start of wave 3, It was almost impossible to identify it to take convinced trade. We could trade by calculations and guessing but Nifty didn’t give time even to think.

Now if we take a look at wave 3, the sharp move from low 7940 to 8049 can be taken as wave 0-3, either it is an inner wave 3 of bigger wave 3 or it is bigger 3 (it is impossible to identify inner waves). And next up move from 8032 to high 8020 can be taken as wave 5 (seeing its personality).

Here wave 5 started from 8032 already entered in extended zone by extending above 70%. 70% extension for wave 5 is placed at 8110 and 100% placed at 8141. Move is not updated after 8081 in above chart; see below chart to see structure of wave 5.

19 Sep Nifty

We can see that wave 5 is moving as Diagonal, It is not “Ending Diagonal Triangle” as wave 4 didn’t overlap wave 2 but it is a diagonal 3-3-3-3-3. It seems inner wave 4 completed of 5. “a” and “b” of 5th is completed and “c” either completed or about to complete.

By seeing charts and explanations, I thinks you can conclude further probable move and levels of Nifty  

Other Possibility: If waves I am taking as 1, 2 and 3 are actually waves “a”, “b” and “c” then we can see 7860 too. It is just for info.

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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