Nifty Elliott Wave Analysis Report for Expiry October 2014 by Deepak Kumar

| October 29, 2014

Nifty is rising sharply after touching the low of 7724 and after given breakout from upper line of complex correction as I expected in my previous reports. I also expected 23% to 38% correction of this whole move from 7724 followed by 38% to 61% bounce, and Nifty declined exactly 23% from top and bounced back though I misidentified the end of correction due to very sharp decline on Monday Opening. Let me show you on charts what happened and what is further on cards:

Elliott Wave Analysis of Nifty by Deepak Kumar

Chart 1

This is hourly time bar chart of Nifty showing move from 8180 to 7724 to latest high. If you remembered my previous reports, I counted move from 8180 to 7724 as wave 4 (Complex Correction as Contracting Triangle) of Ending Diagonal and expecting next wave 5 (started from 7724) to break new high in 3 waves structure (ABC) and assuming progressing up move from 7724 as wave (A) of (ABC). Wave A is showing targets of 8115 to 8196 till now. Let us see the progress of wave (A) closely.

Elliott Wave Analysis of Nifty by Deepak Kumar

Chart 2

This is 15 minutes time bar chart of Nifty showing move from 7724 till to date. By seeing the personality of move and continuous Gaps, assuming move from 7724 to 8064 as wave (0) to (3), next 23% correction from 8064 to 7986 as wave (4) and next wave (5) is in progress from 7986.

If counts I am assuming are correct then wave (5) can go at least till 8115 and higher possible levels are 8156, 8196.

Note: May be wave (3) is not completed at 8064 and is still in progress and impulse after 7986 is inner wave of (3). I am assuming wave (3) completed at 8064 because it broken the rising channel (see blue trend line) and wave 3 is always steepest and faster. So, by considering the personality of wave 3, I can assume completion of wave 3 at 8064. (Refer Chapter 3, Personalities of Waves, Wave 3).

As there is still a fraction of doubt in completion of wave (3), we need dig more and have to see move after 7986 (I am assuming wave (5)) closely.

Elliott Wave Analysis of Nifty by Deepak Kumar

Chart 3

This is 5 minutes chart of Nifty covering move after 7986. Wave (3) seems completed at 8078 and wave (5) started from 8052. Wave (5) achieved it minimum levels of 8088, can go comfortably till 8110 but there are cautions for sharp correction after entering 8110 to 8145 range. Refer the Topic “Calculation of wave 5” and “Extended Wave” and find yourself why I am cautious for sharp correction after 8110.

Completion of this impulse will be the end of wave (3) or Wave (5) shown on (chart 2) and a correction is expected in both cases after completion.

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Learning Observations:

Some of my students and followers asked me how to identify or count minute wave or does Nifty follows 5,3,5,3,5 cycles. I tried to show minutes waves on (chart 1). Put your glasses are or microscope and try to identify if you can. I marked inner waves of impulsive wherever I can, not marked inner waves of corrections for the sake of clarity.

Again, just observe every wave 3, minute, minor or bigger on the chart (move after wave 2 or ii) and compare it with Chapters “Personality of Wave 3” and “Reading Gaps and Steep Bars”)

And when you are not able to find inner waves, I explained in my book “Practical Application of Elliott’s Wave Principles by Deepak Kumar” how to count when you are not able to identify inner waves.

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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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