Nifty can give short term bounce till 8816-8850 – EW Analysis on 04 Feb 2015

| February 4, 2015

Nifty opened Gap Up today and traded traded with negative bias for rest of the with range-bound volatility. Nifty also declined below yesterday’s low to complete last wave 5 as I expected in yesterday’s report. Wave 5 seems to be completed as ED at today’s low 8705. Nifty closed today 32 points down at 8723 after registering high of 8789 and low of 8705. Let’s have a look on latest charts.

Nifty Elliott Wave Counts for 05 Feb 2015

Nifty Elliott Wave Counts for 05 Feb 2015

This is 5 minutes time bar chart of Nifty covering move after Friday’s high 8996. It seems wave (a) of correction from top is in progress as downward impulse and inner wave (4) of this impulse is completed at 8835. 5th also seems to be completed at today’s low 8705 or very near to end.

Wave (3) projected 400% of (1), thus highly extended and wave (4) also corrected wave (3) by 38%.

Wave (5) achieved its minimum Fibonacci Projection of 38% after hitting 8745. 50% and 61% is placed at 8715 and 8686 respectively.

Nifty may start some corrective bounce for wave (b) after completion of this impulse. 38% of this whole impulse from 8996-8705 is placed at 8816, 50% placed at 8850 and 61% is placed at 8884.

We need to see wave (5) closely on separate chart to identify if it is completed or still in progress.

Nifty Elliott Wave Counts for 05 Feb 2015

Nifty Elliott Wave Counts for 05 Feb 2015

This is again 5 minutes time bar chart of Nifty covering move after high 8835 which I am expecting as the start of wave (5). Again it seems inner wave (iv) of (5) is completed at 8793 and very last wave (v) is also seems to be completed at today’s low 8705 as Ending Diagonal Triangle as shown on chart.

Wave (v) here achieved more than 61% projection after hitting 8728 and became extended which is suggesting a quick bounce till 8793 (start of wave “v”).

Note for book subscribers: You can calculate the Fibonacci Projections and Retracements of every smaller and bigger wave shown on chart for practice as explained in book “Practical Application of Elliott’s Wave Principle by Deepak Kumar”. It will help you to develop wave’s calculations skills.

Conclusion:

The charts are suggesting that the downward impulse started from 8996 is completed at 8705 or is very near to complete and there may be some bounce from lower levels in coming sessions. The bounce from the lows can be expected till 8816-8850. Stop loss for exiting longs should be 8697. Any fresh trade can be done during live market hours after identifying progressing waves.

This EW analysis report of Nifty is a part of 02 months FREE service for my book subscribers.

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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"

Comments (3)

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  1. gaurav says:

    very accurate analysis ,

  2. kamal says:

    I am a day trader .kindly details of your day analysis report along with charges

  3. rashmi says:

    v gud analysis.what nect deepak?