Nifty can Bounce Sharply Towards 9406-9470 in Coming Sessions

| April 28, 2017

Nifty opened mild higher at 9359 and consolidated in 45 points range between 9322-9367 for rest of the day. Finally Nifty closed just 9 points down at 9342.

Yesterday, 9257 was the reversal point and stoploss for longs and bounce towards 9406-9470 was expected in coming days. Also suggested to buy Nifty if decline towards 9275-9257 using stoploss of 9549. Nifty consolidated in 9322-9367 range. Let’s have a 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 Likely to Give Good Move Either Side – Elliott Wave Analysis

Elliott Wave analysis of Nifty for 28 April 2017

Elliott Wave analysis of Nifty for 28 April 2017

This is 30 minutes time bar chart of Nifty covering decline from all time high 9273. This is the same chart with explanation which I had explained in my last analysis report because there is no major 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 analysis of Nifty for 28 April 2017

Elliott Wave analysis of Nifty for 28 April 2017

This is 15 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 9363-9301 as Irregular Correction and wave (5) may be in progress.

Minimum 38%-61% projection for wave (5) [calculated from 9301] is placed at 9406-9470 which is next expected target range for upside.

Within wave (5), it seems inner wave (i) is completed from 9301-9361 and wave (ii) completed from 9361-9322 as Irregular Correction and wave (iii) may have started. We can see a good sharp bounce above 9367 towards 9406-9470 if I am right at identifying the pattern.

Both wave (4) and inner wave [(ii) of (5)] are Irregular Corrections a top which is indicating a good bounce if the pattern I am identifying is right.

Conclusion:

Nifty gave a strong reversal and bounced about 300 points in 3 days after completion of Complex correction and still there is no sign of reversal and Nifty have possibility to bounce further.

9406-9470 is next possible target range for upside and 9257 is the point below which we can think of any reversal and same must be the final stoploss for all longs.

For Intraday, Nifty if even touch 9368 can bounce sharply towards 9406-9470. There is no sign of reversal at this point of time.

Trading Point of View:

  1. Nifty even if touch 9368 can be bought using stoploss of 9339 (30 points) expecting minimum target 9406-9470. Modify stoploss to 9366 once Nifty touch 9398.
  1. Nifty if breaks below 9322 then wait for decline towards 9275-9257 to buy Nifty using stoploss of 9249 for target of new high.

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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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