Nifty can show 8715-8838 before 8477 – Elliott Wave Analysis on 09 Feb 2015

| February 9, 2015

Nifty opened huge gap down today and traded with negative bias whole day. Nifty after opening gap down, consolidated in 8550-8585 range followed by a downward jerk of 70 points again in end session. Nifty closed 134 points down at 8526 after registering day’s high of 8603 and low of 8517. Let have a look on latest charts.

Elliott Wave Analysis of Nifty

Elliott Wave Analysis of Nifty

This is 30 minutes time bar chart of Nifty covering move after high 8996. It seems,

Wave (a) of this correction is completed from 8996 to 8705 as impulse which is of 290 points

Wave (b) completed from 8705 to 8838 as corrective “abc” wave which corrected wave (a) by approx 45%.
Wave (c) started from 8838 which is in progress and achieved 100% projection of (a) after breaking below 8547. The 123% for wave (c) is placed at 8478 and 138% is placed at 8435. Let’s have a closer look on wave (c) started from 8838 to count and calculate its inner waves.

Elliott Wave Analysis of Nifty

Elliott Wave Analysis of Nifty

This is 5 minutes time bar chart of Nifty covering move after recent high 8838 which I am expecting as the start of wave (c) downwards.

It seems inner wave (4) of (c) is completed at 8616 and wave (5) of (c) is in progress which already achieved its 100% projection after breaking below 8541. 123% for wave (5) is placed at 8499. Wave (5) of (c) is highly extended which can give good quick bounce if I am right at identifying.

Let’s have a look on inner wave (5) of (c) on separate charts to see its progress.

Elliott Wave Analysis of Nifty

Elliott Wave Analysis of Nifty

This is again 5 minutes time bar chart of Nifty showing move after 8717 which I am assuming as start of wave inner wave (5) of (c).
It seems wave (4) is completed and 5th in progress as shown on chart. Wave (3) achieved 200% projection and is extended wave and (5) already achieved minimum projection of 38% after breaking below 8628. 61% for inner wave (5) is placed at 8489 which is maximum comfort zone.

Conclusion:

Nifty is suggesting that a completion of impulse (wave ‘c’) is very near and there are possibilities of bounce from lower levels after completion of wave (c). The minimum bounce may be till 8715-8838 which is 61% and 100% retracements of wave (c). Long positions can be taken only after seeing an upside impulse followed by a corrective decline. Never take heavy position without confirmation as Nifty closed at day’s low and didn’t show reversal yet. Those who are already holding longs may use 8477 as stoploss.

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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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