Nifty Chart is Suggesting Some Upside – EW Analysis for 11 Nov 2014

| November 10, 2014

I expected a correction from 8359-8418 of minimum 70-120 points and maximum till 8000 and also suggested that Nifty can be sold with 8393 spot as stoploss in my previous report.  Yesterday I mentioned that I will exit remaining shorts if Nifty breaks high again. Nifty broken the high and declined sharply but current set up on charts is not showing any big correction but signaling more upside.

Let us see on chart:

EW Analysis of Nifty

EW Analysis of Nifty

This is 30 minutes time bar chart of Nifty covering move from 7724 to till date. I am not labeling wave counts as there are some doubts but analyzing the personality of waves only. Previously I was taking end of highly extended wave (5) at 8364 but Nifty should not hold for long time after completion of extended wave (5) and pattern at top looks like consolidation. The current set up shows either a new high for wave (5) and a new wave upside is pending.

It is difficult to suggest expected higher levels till I identify a clear pattern and I would like to wait till confirmation. But charts are suggesting some upside (small or big).

Let us see what very short chart is suggesting:

EW Analysis of Nifty

EW Analysis of Nifty

This is 5 minutes time bar chart of Nifty covering Intraday move of 10 Nov. I am ignoring the whole chart as of now and just concentrating on last 30 minutes of move. The pattern formed at the end often result in Gap Up or steep rise next day and nifty is foaming same pattern at closing from last 4-5 sessions. The formation is actually wave 1 and 2. And next wave 3 is always steeper and often forms gaps, so there are chances of Gap Up next day. (This observation may help you in taking BTST or STBT trades)

If it is wave 1 and 2 then wave 1 is of 17 points here, so roughly we can expect at least 30-40 upside from current levels. The later probabilities can be identified after seeing tomorrow’s move.

Learning Note:

Many times you find such situations when you are not able to identify patterns. A single script doesn’t give opportunities every day. Market takes time to decide where it has to go but when it starts, it reaches there in no time. We must concentrate on very short term moves in these conditions to identify smaller waves. And smaller waves are suggesting some up move, may be tomorrow we will be able identify where this move can go.

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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 (6)

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  1. Mahesh says:

    After today’s action I am sure we are going back to 8290 to complete WXY. It seemed like a contracting triangle was forming but today’s action negated that. We will form wave c of Y tomorrow. We have retraced exactly 84% of wave a of Y today @ 8366 at today’s close. Tomorrow c of Y should begin.

    • Deepak Kumar says:

      Mahesh Ji,

      Actually I don’t use sure word in stock market. And I apologize that I am not able to understand WXY as I use Classic Elliott Wave Theory. I just tried to explore the probabilities. May be you are right at your point.

  2. Mahesh says:

    Yes 8336 looks like the low that will be made tomorrow and then a strong move up

  3. Deepak Kumar says:

    Dear Mahesh,

    Chart is suggesting Gap Up or steep rise tomorrow as of my counts that can break upper line of triangle you shown. And I follow only classic EWT and I don’t have any idea about abcde correction. I just know double zigzag or triple zigzag. Chart is suggesting some up-move and Nifty should not break below 8333 for that up move.

  4. Mahesh says:

    Could the market action of the last 2 days forming a limiting contracting triangle?
    see my chart here.

    If this is correct then we should get ready for upward thrust. The probable target 8336 of e wave is given in my chart.

  5. satish says:

    thank you