Nifty Chart is Suggesting New High Again – EW Analysis for 13 Nov 2014

| November 12, 2014

Nifty hits new high again and also given highest closing today. Today Nifty closed at previous all time high. I expected Nifty to touch at least 8393-8413 without breaking below 8322 in my yesterday’s report Elliott Wave analysis of Nifty for 12 Nov 2014 and Nifty moved as per expectations today. Let us see what charts are suggesting for next sessions.

Elliott Wave Analysis of Nifty for 13 Nov 2014

Elliott Wave Analysis of Nifty for 13 Nov 2014

This is 5 minutes time bar chart of Nifty covering move after 8290 (low of 5 Nov 2014).

Current set up on chart is not suggesting the progress of clean impulse as progress of wave 3 seems slower that wave 1. The whole move also not looks like a correction after seeing higher tops and higher bottoms. Both these conditions are signaling the formation of Ending Diagonal as move from 8290 till now can be identified as abc-abc-abc.

Now, if this is the progress of Ending Diagonal then Nifty to fulfill some conditions:

  1. Nifty to touch or break below the thin red line joining point (c) of (2) and (b) of (3) (lower thin red line in upwards slope) as no part of wave 3 should be below lower line of ED (line joining wave 2 and wave 4).
  2. Nifty should not break below the start of wave 3 (8304) as wave 4 can never go below the start of wave 3 in ED.
  3. There are possibilities for wave 4 to enter between lower red thin line and dotted blue line.
  4. And if these conditions are fulfilled then Nifty to show new high once again as wave 5 (unless wave 5 goes failure).

What if it is not an Ending Diagonal?

Even if it is not the progress of Ending Diagonal, Possibilities of new high are there as the whole pattern is not suggesting completion of wave yet.

Note: The whole pattern will be negated if Nifty breaks below 8304.

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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 (12)

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  1. Mahesh says:

    In my opinion correction is over WXY is confirmed.

  2. avinash says:

    awesome analysis deepak. Cheers. you are doing a great work of publishing your findings. greatly appreciate

    • Deepak Kumar says:

      Thanks a lot Avinash,

      I actually I prepare analysis reports for my students to make them learn Elliott Wave Theory faster but post the same report here also. May be I will stop posting reports here soon as number of students is increasing.

  3. Mahesh says:

    8321 may be the end of the correction. this is where a wave ends. For a flat with strong B (161.8 of A) wave C cannot retrace whole of A. My stop is at 8319.

  4. satish says:

    thank you

  5. KAMAL KANT says:

    Hi Deepak,

    I have been following your charts for a while, need your assistance as I have been carrying shorts of 7500 Dec option. Would nifty be retesting levels of 7700 in near term?

    • Deepak Kumar says:

      Kamal Kant JI.. I can’t say confidently that 7700 will come. Impulsive can be predict in advance but Corrections are hard to predict. Keep reading my updates, I can tell only after correction starts.

      But Your strategy of options trading is really risky.. If you traded then you must have stoploss for it.

  6. Aaditya Rana says:

    Dear admin ,
    if we see a new high after hitting the thin red line or dotted blue line , then what are the odds that it would be lead to a correction , and if it is a correction then, what could be maximum lower point nifty could go.
    i am still unable to grasp where we are in in rise from 7724.
    I think after coming so far i.e. almost 700 points from 7724 , you must tell your follower about the most probable count of nifty from 7724.
    you are doing extremely good at telling next days move before hand but broader picture is still hazy.
    I am sure every follower or yours including me is very keen to know if this possible completion of wave 5th in this Ed would lead to completion of wave 3 from 7724 or if we are still in some kind of internal wave 5 of subdivision of wave 3 from 7724

    • Deepak Kumar says:

      Dear Aaditya, Thanks for appreciation.
      If you read my previous reports, I mentioned that there is some confusion in whole counts from 7724. It may be full impulsive or ABC. The practical fact is, we must identify patterns/counts and should not try to create it. I am concentrating on short term moves (small waves) till I find any clear pattern on bigger side. If this last move goes Ending Diagonal then possibilities will increase for completion of full impulse at top followed by a good correction.

      Our aim is not just to try hard to identify previous patterns, aim of our analysis is making money. I don’t bother about big move till I am gaining some points in short term. An experienced analyst will wait for clear signal.

      And I prepare these report for my students to teach them on live market. It will be a great practical lesson for them to see Ending Diagonal in progress if it really happen. So, I am focusing on this complex formation only. I want to teach my students how to react and catch moves in complex formation, when they are not clear about previous counts and I think nothing is better than these live examples. I want to teach them how EWT can be applied on even 5 minutes chart to catch smaller moves.

  7. Mahesh says:

    Hi Deepak, Thanks for sharing your analysis. The level i will be watching tomorrow is 8357. This is where a=c (as per my analysis). I will be buying at this level with stop placed at 8320.