Nifty Elliott Wave Analysis for 12 May 2015

| May 11, 2015

Nifty opened huge gap up today as expected and traded with strength to rise gradually till day’s high 8332 end of the day. Nifty also achieved our expected minimum targets of 8248-8314 which I mentioned in my yesterday’s Elliott wave analysis report of Nifty (sent only to clients by email) and finally closed 133 points positive at 8325 after registering day’s low of 8225 and high of 8332. Let’s have a look on latest Nifty charts.

Elliott Wave Analysis of Nifty for 12 May 2015

Elliott Wave Analysis of Nifty for 12 May 2015

This is 5 minutes time bar chart of Nifty covering move after 07 May 2015’s low 7997 which I am expecting a start of impulse. I am showing the wave counts after 7997 only as previous counts as same as I explained in my Elliott Wave Analysis Report of Nifty for 08 May 2015.

It seems wave 1, 2, 3 and 4 are completed and wave 5 is in progress as shown on chart. Wave 3 is just 161% and wave 4 seems Irregular correction here. Wave 5 gone highly extended which is almost 100% till now.x

There is some confusion where I marked wave 3 and 4 but progress of an impulse after 8272 seems clear which I marked as start of wave (5) with inner waves (i), (ii), (iii), (iv) and progress of (v) where wave (iv) seems completed at 8288 and (v) is in progress.

Wave (iii) is extended so we can expect wave (v) to project 38%-61% which is placed at 8345-8380. We can expect some stop or decline after completion of wave (v) at higher levels.

Conclusion:

Nifty charts are suggesting that a completion of an impulse is near, may be in 8345-8380 range and we can see some decline after completion of this impulse. The decline may be small or big which can be calculated only after seeing progressing waves. Minimum we can expect 23%-38% decline of whole impulse from highest point.

So, immediate stop loss for existing longs must be 8286 which is just below the start of wave (v). Nifty didn’t show the sign of reversal yet as it close near extreme high of the day. So, it is better to ride this bounce with trailing stop loss to get maximum benefits.

Part profit booking can be consider at higher levels after identifying waves to re –enter again if we see the completion of corrective decline at lower levels.

Note: This analysis is applicable for tomorrow only as we need to see the wave’s pattern of decline from high to analyze further movement if some decline happens tomorrow.

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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"

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