Nifty charts are warning cautions for decline till 8470 in short term – EW analysis on 19 Feb 2015

| February 19, 2015

Nifty opened Gap Up today but declined 100 points sharply from high 8902 till mid session followed a aggressive rise of 120 points again to touch new day’s high of 8913. Nifty closed 26 points up at 8895. Let have a look on latest charts.

Elliott Wave Analysis of Nifty for 20 Feb 2015

Elliott Wave Analysis of Nifty for 20 Feb 2015

This is 30 minutes time bar chart of Nifty covering move after recent low 8473.

It seems Nifty completed wave (X2) today at low 8794 as Irregular Correction as I was expecting in my last report. I was absolutely right at identifying the pattern as Irregular correction but failed to identify the top. I assumed inner wave (c) of (B) already completed yesterday at 8894 but inner wave 5th of (c) was pending which completed today at 8902 and there was an expected sharp decline exactly till end of wave (A). End of wave (A) was 8794 and (C) completed today at 8794.50.

Now, wave are following all the criteria for Triple Zigzag till now it seems to be in last “abc” cycle somewhere which is expected to be completed shortly.

If I am right at identifying this as Triple Zigzag the Nifty need to be go below 8473 again in short term after completion of last “abc”. Let’s have a closer look on today’s move.

Elliott Wave Analysis of Nifty for 20 Feb 2015

Elliott Wave Analysis of Nifty for 20 Feb 2015

This is 5 minutes time bar chart of Nifty covering today’s intraday move.

It shows, Irregular wave (B) completed today at high 8902 followed by sharp downward impulse as wave (C).  Wave (C) is a clear 5 wave’s move and carrying all its personalities. The bounce after completion of wave (C) may be the start of last (abc) cycle of Triple Zigzag before big correction again.

The bounce from low today is sharp and it is difficult to identify its inner wave as of now. From personalities, it seems waves 1, 2 and 3 of (a) or waves (a), (b) and (c).  The pattern may be clear tomorrows and Nifty will show the sign for next move when time comes. But cautions are advised as Nifty can decline sharply if it is really a Triple Zigzag.

Conclusion:

The set up on charts is following all the rules and personalities of Triple Zigzag which is warning cautions for decline till 8473 again but top is not clear yet. And heavy long positions or overnight longs without stop loss must be avoided. There is a risk of sharp decline in near term. Trades can be done only after identifying small patterns on 5 minutes chart with small stop loss.

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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 (8)

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  1. rashmi says:

    thnx deepak for the prompt reply.any clues about market after budget?

  2. Manju says:

    Hi Deepak

    Thanks for sharing your analysis. Could you please update us at which stage you feel we are in Triple ZigZag scenario currently? Do you think one more high is pending before this zigzag correction is over?

  3. Karthik says:

    Hi Deepak,
    Firstly, good work on explaining market moves with EWT.
    Do you see some invalidation of this triple zigzag? If yes, could you enlighten levels to watch?
    Thanks

    • Deepak Kumar says:

      Dear Larthik,

      I go with only one possibility no matter if it is right or wrong. And I comes to conclusion after analyzing every possibility and reasoning. So, I can’t comment on any other possibility rather than Triple Zigzag. You can never trade if you keep so many possibilities in mind.

  4. karthikeyan says:

    hai sir your EW levels are really superb ,i m just watching for couple of week..i m interested in your paid service…

    thx&regards,

    R.A.KARTHIKEYAN
    09791330100.

  5. rashmi says:

    hi deepak,excellent work.can you please time this correction that is before or after expiry.it would be very helpful to us.
    warm regards

    • Deepak Kumar says:

      Thanks Rashmi for the words of appreciation.

      You are asking this question just because you are planning to take position is Feb Options. But I can’t say any exact time frame, it must be quick if it really happen. Please be careful with your trade. I just shown the possibilities.