Elliott’s Waves and Open Interest Analysis of Nifty for 17 Sept 2014

| September 17, 2014

Nifty today decline almost 120 points from high after flat opening in morning. Nifty was in tight range in morning session but declined sharply in a rhythm in mid and end session. Though I shown possibilities for 7934 in my medium term charts but I didn’t expected major fall below 8000 by seeing yesterday’s wave pattern and OI data but we can’t be accurate always. Most of analysts including me expected Nifty to take support at 8000 but market always go against the majority.

Let us see the further probable move on charts: –

Elliott Wave Chart Analysis of Nifty

Elliott Wave Chart Analysis of Nifty

In my yesterday’s medium term chart I shown possibilities for wave 4 till 8028-7934 (23-38%) which normal correction ratios but by seeing internal wave of “c” I was expecting maximum levels till 7990 only. 

Now, correction is already done more than 38% where as 50% (rare cases) is placed at 7857. We can’t ignore the possibilities of 50% (7857) but Nifty should not touch 7836 to keep this pattern.   The correction is already completed or can go lower but there are expectations of good up move again after completion this correction that can show levels above new high again. 

We need to see wave “c” for clarification:

Elliott Wave Chart Analysis of Nifty

Elliott Wave Chart Analysis of Nifty

By seeing correction for wave 4 from high of 8179, wave (c) already extended more than its normal proportion of wave (a). (c) Extended 123%-138% of (a) in normal conditions but here (c) already extended about 161% of (a). So any selling can’t be advised at low now, buying positions can be taken after confirmation only with stop loss for higher levels again.

If I try to identify the inner waves of (c), 5th of (c) seems highly extended that suggests fast recovery till 8030-8060. But it is difficult to identify inner waves of “c” accurately and we must wait for any upside trigger to take long position. 

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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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