Nifty opened flat on Friday and traded in 50 points range for rest of the day. Nifty declined gradually till 8733 followed by a gradual rise for new high of 8787 before closing 2 points up at 8780. Let’s have a look on latest charts to conclude further scenario of Nifty for next sessions.
I am showing wave counts after latest low 8269 only as there is no change in previous counts explained in Monday’s report Latest Elliott Wave Counts of Nifty for All Time Frames on 05 April 2015.
This is 15 minutes time bar chart of Nifty covering move after last low 8269 which I am expecting as a start of an impulse.
It seems, it is wave 3 which completed at 8692 followed by 23% correction till 8587 for wave 4. And there is a start of wave 5 from 8587. Wave 5 already achieved its minimum projection of 38% where as 61% is placed at 8848 which may or may not be achieved. Let’s look at wave 5 closely on 5 minutes chart.
The structure of wave 5 is suggesting that top is very near and Nifty can start decline minimum till 8620 which is end of inner wave (i) of 5. And wave 5 may not break well above 61% projection (8848) before this decline.
Let’s see wave 5 closely on 5 minutes chart for separate calculations:
This is again 5 minutes time bar chart of Nifty covering move after 8587 which I am expecting as start of wave (5). And this is the main wave must be focused on.
It seems wave (iv) of (5) is already completed at 8682 as Irregular Correction followed by start of wave (v). Wave (v) already achieved 61% projection and entered in extended zone whereas 100% is placed at 8826.
From the structure, it seems wave (v) of (5) is progressing as Ending Diagonal Triangle. May be inner waves 1, 2 and 3 of (v) are completed and further pattern can be identify only after seeing tomorrows move. But the structure is suggesting that immediate end of this wave is very near, may be below 8826.
The set up on chart is suggesting that the immediate top of this move started from 8269 is very near and Nifty can show some decline in near term. Minimum decline we can expect till 8620 which is the end of inner wave (i) of (5). Inner wave (v) of (5) is already extended, so Nifty may not go above 8848.
It needs short term cautions at higher levels and stoploss for selling must be 8851 (just above 8848). Never trade without stoploss.