Nifty can Bounce Sharply above 9377 for New High Again

| May 7, 2017

Nifty opened higher at 9374 and registered all time high 9377 but failed to stay at higher levels and declined sharply just after opening and traded with negative bias for rest of the day. Nifty declined to register day’s low 9272 before closing 74 points down at 9282.

Yesterday, 9323 was fresh stoploss for longs and bounce towards 9380-9449 was expected in coming days. Also suggested to hold Nifty longs taken in 9275-9257 range with fresh stoploss 9323 expecting same targets 9380-9449. Nifty bounced till 9377 (03 points short of minimum target) and then declined to trigger stoploss of 9323 on Friday. Let’s have fresh look at latest charts for further scenario.

Today I am covering decline from earlier high 9273 and previous counts are explained in my earlier report Nifty can Bounce Towards 9380-9449 in Coming Sessions

Elliott wave counts of Nifty for 08 May 2017

Elliott wave counts of Nifty for 08 May 2017

This is 30 minutes time bar chart of Nifty covering decline from all time high 9273. This is the same chart which I had explained in my last analysis report because there is no change in wave counts on this chart.

It seems a correction is completed from 9273-9075 as Double Zigzag correction as marked on chart and new impulse has been started from 9075. We need to analyze this new wave started from 9075 separately to calculate expected targets and levels.

Now, let’s have a separate look at progress of new wave started from 9075.

Elliott wave counts of Nifty for 08 May 2017

Elliott wave counts of Nifty for 08 May 2017

This is again 30 minutes time bar chart of Nifty covering bounce after 9075 which I am expecting as start of new wave.

It seems wave (1) completed from 9075-9182, wave (2) completed from 9182-9088, wave (3) may be completed from 9088-9363, wave (4) may be completed from 9367-9272 as Irregular Correction or still in progress and wave (5) for new high may still be pending.

Earlier I was expecting wave (4) completed at 9269 as simple Zigzag and wave (5) in progress but Nifty declined back without achieving minimum 38% projection of wave (5), 38% projection was 9380 and Nifty declined from 9377. So, may be wave (4) is still in progress as Irregular Correction as shown on chart and wave (5) may still be pending.

Now, if the pattern I am identifying is correct and it is really wave (4) as Irregular Correction at top then Nifty needs to bounce above all time high 9377 again to complete wave (5). And 38% retracement of wave (3) is placed at 9260 which can be referred as reversal point or stoploss for longs.

 

Conclusion:

Nifty bounced from 9275-9257 last week as expected bit declined back without achieving minimum target 9380. Nifty decline from 9377 which is just 3 points short from minimum target 9380. So, minimum 9380 is still pending if I am right at identifying the pattern and 9260 is the points which we can refer as reversal point and stoploss for longs.

Trading Point of View:

Nifty can be bought in 9272-9260 again with stoploss of 9247 (some points below reversal point) expecting sharp bounce above 9377 again. We still need to wait for the confirmation of reversal.

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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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