Nifty opened flat today and declined sharply till 8425 as (abc) pattern at yesterday’s close was suggesting but reversed from lower levels and bounced till 8520 before closing 28 points positive at 8495. Let’s have a look on latest charts now.
Today I am showing probable wave counts only after last week low 8338 as previous counts are same as I explained in my yesterday’s analysis report of Nifty. Read Nifty Seems Sell On Rise Till Aug 2015 Expiry – Elliott Wave Analysis on 18 Aug 2015
This is 5 minutes time bar chart of Nifty covering move after last week low 8338 which I am expecting as upside (abc) correction. The counts are charts are showing that wave (A) and (B) may be completed and (C) may be in progress which can go till 8530 -8555 followed by a sharp decline below 8338 again. Please read the counts on chart carefully.
If (abc) correction is already completed at 8530 and next downside impulsive is already started then Nifty can start declining sharply from present levels also which I explained next chart.
This is again 5 minutes time bar chart of of Nifty covering move after 18 Aug high of 8525. We can see there is an impulse completed from 8525 -8425 followed by a bounce till 8520.
If this downward impulse is wave (c of 4) (as I shown on 1st chart) then upside should be impulsive wave which can bounce till 8530 -8550 followed sharp decline.
And if this downward impulse is wave (1) and bounce is (abc) correction as wave (2) then we can see a sharp decline from present levels.
Overall we can expect a sharp decline from present levels or after touching higher levels of 8530 -8555 in both cases.
I am showing Nifty Daily chart covering move after 2015 low 7940 without any wave counts. I was seeing the chart and found something interesting which I presented there. Just have a look at the chart and see if you can see something interesting. Thought’s it doesn’t have any connection with EWT but just have a look. You can read the wave counts of same chart in my yesterday’s analysis report.
By analyzing all conditions on charts, there are possibilities for a sharp decline or downward jerk from present levels or from 8530-8555 levels in very short term. There are rare chances for Nifty to go above 8555 before a reasonable correction. Minimum Correction we can expect till 8321.
Short term strategy should be “Sell on Rise” as also mentioned in my last 3 reports. Nifty consolidated in 8430-8530 range for 3 sessions and now a break is pending, most probably on down side. So, Sell on rise would be best trading strategy for short term. 8561 can be the positional stoploss for shorts which can be reduced further if Nifty decline below 8420.
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