Nifty can show 8626 again without breaking below 8080 – EW analysis on 18 Dec 2018

| December 18, 2014

EW add 2

Nifty opened 90 points gap up today and continued its strength after a small decline and also increased the possibilities of move towards new high in near term. Nifty closed 130 points up from previous close. Let see what charts are suggesting.

Elliott Wave Analysis of Nifty for Dec

Elliott Wave Analysis of Nifty for Dec

This is daily time bar chart of Nifty covering move after June 2014 low of 7118. The chart is suggesting that the move after 7118 is progressing and Ending Diagonal and final upside wave (c) of (5) of this Ending Diagonal has started from Yesterday’s low 7961. Generally this upside wave (c) of (5) needs to break previous high 8626 to complete pattern. Now, we need to see the bounce after low 7961 on 5 minutes chart.

Read complete details at Medium Term Elliott Wave Analysis of Nifty dated 10 Dec 2014

Elliott Wave Analysis of Nifty for Dec

Elliott Wave Analysis of Nifty for Dec

This is 5 minutes time bar chart of Nifty covering move after low 7961. This chart is suggesting that wave (1) and (2) of big (c) is completed and inner wave (iii) of (3) is in progress.

If I am right at identifying then Nifty can move higher without breaking below 8080 as wave (iv) of (3) cannot overlap wave (ii) of (3) and (ii) started from 8082. Pattern will be negated if Nifty break below 8080.

Conclusion:

Conditions on chart are suggesting buying on Dips only till 8626 or till we identify something else. And positional stop loss for existing longs should be 8080. Any fresh trade can be done after identification of corrections during live market hours. Shorts must be avoided above 8080.

Also Read: Why You Must Learn Elliott Wave Analysis from Deepak Kumar

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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 (14)

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  1. Rahim Moti says:

    First Happy new year for every one
    As I am new for this elliot wave can you help me in this coming week nifty can show us 8550. Or What should we consider for nifty in this January series. Up move or down move or side ways.

    • Deepak Kumar says:

      Dear Rahim Moti Ji.

      I am not fully convinced about mid term pattern of waves so can’t say confidently about next bigger move. So, I am concentrating on small moves only and levels of 8365 looking possible.

      And we should keep the vision of bigger targets in our mind but the trade must be on latest wave’s pattern on smaller time frame. Any thing can happen.

      Levels of 8365 seems possible as of now and next probabilities may be identified later.

  2. KAMAL KANT says:

    Dear Deepak,

    You haven’t updated the next waves since couple of days. Please do so. Is this correction over for the short term? Is the markets going to touch new highs before budget?
    Please reply

    Thanks l

    • Deepak Kumar says:

      Dear Kamal Kant Ji,

      I don’t update my analysis reports here daily. I provide daily Elliott Wave Analysis Reports of Nifty to my subscribers so it is not wise for them If I post the same report here for Free. I post my Elliott Wave Counts of Nifty Occasionally.

  3. shree says:

    Hi Deepak,

    If we assume an abc structure in the 8626-7961 correction, C would be more than 6 times A. Have you even seen that scenario anywhere else?

    Thanks,

    Shree

    • Deepak Kumar says:

      Dear Shree Ji,

      I didn’t marked inner waves of the move from 8626-7961 where you can identify that my wave C within that move is 600% of A. It is your own imagination.

      C is just above 100% of A as of my counts which I didn’t mark here. And it is not compulsory that this move is “abc”. It may be impulse also with highly extended wave 5. I just go be probabilities.

      And Sorry, I am practicing and applying Elliott Wave Theory in my real trades from 4 years and also teaching to more than 50 students but I didn’t even imagine that wave C can be 600% of A. But, nothing is impossible.

  4. abhinav jain says:

    Dear Mr. DEEPAK
    I also practice E W theory, but what I know is that wave B should consume atleast 100% OR more time as of wave A, so what u r calling wave B should either be wave X to be resumed by upside or wave A or 1 of downfall…..

    • Deepak Kumar says:

      Dear Abhinav Jain Ji

      I don’t know which EW theory you are talking about where wave B should consume at least 100% OR more time as of wave A. I feel sorry for that.

      I use only Classic Elliott Wave Theory and What I know is, wave B can be more than 100% of A only in case of “Irregular Correction” other B is mostly below 100% of A. But here, I explained about wave B of bigger wave 5 of Ending Diagonal so there is no chance for wave B to consume 100% of A. These are two articles I wrote about wave’s cycles and personalities that I follows:
      http://sweeglu.com/concept-of-elliott-wave-theory-explained-with-examples-waves-cycle/
      http://sweeglu.com/concept-of-elliott-wave-theory-explained-personalities-of-waves/

      May be you are using some other alternate/modified EW theory like Neo Wave, Wolf Wave or Harmonic Waves etc or May be I know something different what you learned in your books. But I follow only what I am applying from last 3 years and what I practically observed.

      So, I feel sorry that I can’t debate on your comment. Thanks..

      • abhinav jain says:

        Thanks for your reply…. I read this in MAGIC AND LOGIC OF ELLIOTT WAVE BY Hemant kale….
        Any ways most of the times our count are similar…

  5. MAHENDRA VAGHELA says:

    I HAVE SHORTED 2 LOTS OF OBC DEC FUTURE @305.65 ON 17/12/2014
    N 2 LOTS OF TATAMOTORDVR @321.65 ADVICE FOR HOLD OR BOOK LOSS

    • Deepak Kumar says:

      Dear Mahendra Ji.

      I have not seen OBC and Tata Motor Chart so can’t say anything. Any if you traded then you must have stop loss before initiating the trade. You must have reason before trade and must know when to exit and then you need to follow it.

  6. Aaditya Rana says:

    dear admin,
    Thanks for your update, it would really help so many person who are terrified to buy here due to bear mongering being run on every platform right now.
    but for the purpose of learning from decline from 8627 to 7962, it would be very help full if you could show the 3 waves abc structure of this B wave which got over at 7962.

    • Deepak Kumar says:

      Thanks Aaditya Ji for words of appreciations. Yes Nifty is suggesting new high again and we must use trail stop loss in our longs till we identify any reversal.

      And it seems Wave (B) from 8626 to 7961 completed with internal “abc” with wave “b” just 23%. I posted these counts to my subscribers/students in my “daily report” but I didn’t feel any necessity to post here as it already happens and most of the users don’t understand it.