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:
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.
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.