Nifty Charts are Suggesting Some Correction after 8924 – EW analysis for 28 Jan 2015

| January 27, 2015

Nifty opened Gap up today at 8872 and declined sharply to 8826 just after opening followed by gradual bounce till 8861. Nifty declined from 8861 again in midsession till 8825 but bounced more than 90 from low in last session. Finally Nifty closed 75 points up at 8910 after registering the day’s low of 8925 and high of 8924. Let us see what charts are suggesting.

Elliott Wave Analysis of Nifty for 28 Jan 2015

Elliott Wave Analysis of Nifty for 28 Jan 2015

This is 15 minutes time bar chart of Nifty covering move after 8066. By seeing the present structure it seems,

  • Wave (1) completed from 8065.89 to 8355.90 as Impulsive
  • Wave (2) completed from 8355.90 to 8236.75 as “abc” (Double Zigzag) corrective that corrected wave (1) by just 40%.
  • Wave (3) completed started from 8236.70 to 8526.84 which projected exactly 100% of wave 1. Thus wave (3) is not extended and next wave 5 can go extended to achieve minimum 61% projection.
  • Wave (4) completed from 8526.84 to 8452 which corrected wave (3) by 23%.
  • Wave (5) started from 8452 and projected above 100% after breaking 8913. 123% for wave 5 is placed at 9021.

We need to see wave 5 closely to count and calculate its internal waves:

 Elliott Wave Analysis of Nifty for 28 Jan 2015

Elliott Wave Analysis of Nifty for 28 Jan 2015

This is 15 minutes time bar chart of Nifty covering move after 8452 which I am expecting as start of wave 5. By seeing the chart it seems,

  • Wave 1 completed from 8452 to 8570
  • Wave 2 completed from 8570 to 8532 which corrected wave (1) by only 30%
  • Wave 3 completed from 8532 to 8772 which projected wave 1 by 200%, thus extended and we can expect normal wave 5
  • Wave 4 completed from 8772 to 8727 which seems complex correction and corrected wave 3 by less than 23%.
  • Wave 5 started from 8727 and is capable to project 38%-61% which is placed at 8849-8924. Wave 5 exactly achieved its normal projection of 61% after hitting 8924.

 

Conclusion:

If am right at identifying the waves the Nifty is very near to its immediate top as it has achieved its normal limits. Extended 5th wave achieved more than 100% projection and inner wave (5) of 5th also achieved its normal projection of 61% which is warning cautions at these levels again.

Warning cautions doesn’t means selling heavily. The trade must be light and only during live trading hours after identifying smaller wave pattern on 5 minutes chart with small stoploss. Never overtrade and trade with stoploss only.

Tags: , ,

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 (2)

Trackback URL | Comments RSS Feed

  1. Hitesh says:

    Gm deepakji mee jaha tak janta huu wave (4) 23.6 retracement tabhi hota hee jab wave 3rd ext. ho