Nifty Elliott Wave Analysis after RBI Rate Cut on 04 March

| March 4, 2015

RBI again announced 0.25% rate cut today morning just before opening and nifty opened 120 point gap up. And I got requests to update my Elliott wave analysis of Nifty after RBI rate cut with latest wave counts and possibilities.

As I mentioned in yesterday’s Elliott wave analysis of Nifty and in my previous reports that I am not able to identify any positional pattern so I am concentrating only on short term patterns intraday move moves. And whenever I find difficulties to identify positional pattern for many day, there is always a hidden surprise behind it.

Honestly speaking, I am still not able to identify any clear medium term pattern but want to alert small and retails traders to be protected as the whole world is bullish and don’t just trade heavily and blindly seeing what the world is saying. Let me explain. There is a chart below where I shown just a single possibility to alert you:

Nifty Elliott Wave Updates after RBI rate cut

Nifty Elliott Wave Updates after RBI rate cut

This is hourly chart of Nifty covering move after January high of 8996. Though, I am not completely confident but there is a possibility of Irregular Correction here as shown on chart.

  • Wave (B) may have gone irregular and projected exactly 123% of (A)
  • And wave (c) of (B) also projected just above 100% of (a)

Conditions are satisfying for an Irregular Correction here and if it is really an Irregular Correction then Only GOD can save the Bulls.

Conclusion:

The scenario I shown on chart in this Elliott wave analysis report of Nifty for RBI rate cut is just a possibility to alert small and retails traders as whole world is bullish now and Market often move against the majority. I am not recommending for Sell but just want to advise that avoid any naked heavy trade. Either trade with strict stop loss or hedge your position.

Because, if this move turn into an Irregular Correction then there may be a very sharp fall till 8500 or below. Don’t take this report as recommendation but just as possibility.

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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. P.VISWANATHAN says:

    this 4 th wave is an irregular correction where the wave C ends @ 23.6% or 38.2% 0f wave 3.in this case whether 23.6% or 38.2% ? please clarify

    • Deepak Kumar says:

      These 23% or 38% fibonacci ratios are just indicative in Elliott Wave Theory, Wave 4 can be short of 23% or more than 38%. There is no hard rule. You need to watch internal waves cycle to to find most nearby levels. Elliott Wave is not as simple as just counting 123 and calculating ratios. There is a lot.

  2. GHANSHYAM says:

    YESTERDAY YOUR POST FALL 8880 & TODAY FALL 8500 OR BELOW WHAT IS CONFIRM FALL NEXT DAY?

    • Deepak Kumar says:

      Mr. Ghanshyam,

      I just show the possibilities and I don’t have remote control of market in my hand so that I can tell you exactly when and how much Nifty will fall or rise. You can’t understand this analysis report unless you have knowledge of Elliott Wave Theory. It is not necessary that whatever I said will happen, only God can do that. I am analysts and I just identify possibilities and then trade with stop loss and always happy with whatever I get.

  3. GHANSHYAM says:

    HOW MANY DAYS 8400 ACHIVED?

  4. hiren says:

    Aaj sabko Anil Kappor and Madhuri Dixit Ka gana Feel Ho Gaya Hoga..
    ” Dhak Dhak Karne Laga “

  5. hiren says:

    Deepakji Either Market going for New Bullish Trend or ??

    • Deepak Kumar says:

      Market is expected to give a new bull rally after completion of this correction if it completes as Irregular Correction. Can say only after completion of this correction.

  6. sanjeev jha says:

    dear deepak, this is also possible that its is an irregular correction but for that to happen (c) wave of B needs 5 waves to the upside and as of now i think we only had 3 wave till top of 9118.
    if u were able to count 5 wave still top of 9118 then bulls are indeed about to be killed but otherwise acc to this count also we are still in 4th wave of (c) from 8670

    • Deepak Kumar says:

      Yes Sanjeev Ji.. Wave C must have 5 waves. But there is one more personality of wave C and 5. Sometime time C and 5 starts with overlapping of waves followed by a big gap up/ gap down and then never touch that gap up price and rise or fall sharply. You will not find it any book about Elliott wave theory from famous article but you will see it if you observe.

      It is just my research and observation. Most of the big rallies from tops or bottoms starts with Gap down/ Gap up followed by sharp reversal.