Further Elliott Wave Analysis and Outlook of Nifty for 26 May 2017 Onward

| May 26, 2017

Nifty mild higher at 9384, registered low 9379 and traded with positive bias for rest of the day. Nifty bounced more than 160 points to register high 9523 before closing 149 points up at 9509.

Yesterday, a bounce above 9532 was expected in coming days because of corrective decline. So, Nifty was suggested to buy if break above 9370 with stoploss of 9359 for minimum targets 9420-9431 and Nifty 9500 Jun Call was suggested to buy and hold till further updates. Nifty bounced more than 160 points and Jun 9500 Call bounced till 107 from 61. Let’s have a fresh look at latest charts for further scenario.

Today I am covering the move from all time high 9532 and this analysis report is further updates on my last analysis report Nifty can Bounce Above 9532 in Coming Days – Elliott Wave Analysis

Elliott wave analysis of nifty for 26 May 2017

Elliott wave analysis of nifty for 26 May 2017

This is 15 minute time bar chart of Nifty covering decline from all time high 9532.

It seems a complex correction is completed from 9532-9341, most probably a Double Zigzag correction but inner waves of 2nd (abc) cycle are not clear.

And new impulse has been started after completion of this Complex Correction which is steeper and faster. So, let’s analyze this sharp impulsive wave on separate 5 minutes chart.

Elliott wave analysis of nifty for 26 May 2017

Elliott wave analysis of nifty for 26 May 2017

This is 5 minute time bar chart of Nifty covering bounce from 9341 which I am expecting as start of new impulse.

This impulse seems steeper and faster and within its wave (3). Wave (2) of this impulse is very small and less than 23% and wave (3) started from 9407. Most probable counts I have marked on chart. So, Nifty still have possibility of higher levels above 9532 because wave (4) and (5) is still pending.

23%-38% retracement of progress of wave (3) is placed at 9495-9478, so 9478 can be referred as reversal points.

And we look at small decline at top 9523 then there is a small impulsive decline from 9532-9497 which is be wave ‘a’. So, 100%-161% projection of this wave ‘a’ is placed at 9483-9466 which we can use as safe entry levels for next trade.


Nifty bounced sharply by 160 points and also bounce very near to 9532 exactly as we expected. Nifty achieved 9523 and still have possibility for high above 9532 because wave (4) and (5) is still pending with the bounce started from 9341.

9478 is the point which we can refers as reversal point or stoploss for longs where 9483-9466 is safe entry range for fresh longs. So, exact stoploss must be some points below 9466.

Trading Point of View:

9463 (some points below 9466) cab be used as fresh stoploss for 9500 June call if taken yesterday and wait for a bounce above 9532 to book profit.

Nifty if decline in 9483-9478 range can be bought with stoploss of 9463 expecting minimum target above 9532 which further can extend higher.

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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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