Nifty Outlook and Elliott Wave Analysis for 29 May 2015

| May 28, 2015

Nifty opened mild gap up today and bounced sharply till 8364 just short of 8369 which I expected yesterday and reversed below opening price within first 15 minutes of trade.  Nifty traded with negative bias to decline till 8270 till afternoon followed by a sharp bounce till 8328 end of the day. Finally Nifty closed 15 points down at 8319. Let’s have a look on latest charts.

Nifty Elliott Wave Analysis for 29 June 2015

This is 5 minutes time bar chart of Nifty covering move after latest high 8489. The move from high 8489 looks like an impulsive wave where waves 1, 2, 3 and 4 are already completed and wave 5 is either completed or in progress.

Wave 5 achieved its minimum projection of 38% after breaking below 8283 whereas 50% and 61% are placed at 8258 and 8232 respectively. Let’s see the progress of wave 5 separately on 5 minutes charts to identify its inner waves.

Nifty Elliott Wave Analysis for 29 June 2015

This is again 5 minutes time bar chart of Nifty covering move after today’s high 8364 which I am expecting as start of wave 5 of downward impulse.

From the chart, it seems just inner wave (3) of 5 is completed at today’s low 8364, wave (4) completed at 8328 and wave (5) is in progress. Wave (4) retraced more than 61% of (3) but is well clear if wave 1 yet.

If the counts are correct, then Nifty can break 8270 again to complete wave (5). 61% for wave (5) is placed at 8269 thus wave (5) needs to be extended to complete pattern which further suggest a sharp bounce after completion of wave (5).

Conclusion:

As per the scenario I shown on charts, Nifty can decline again below 8270, may be in 8269-8258 range to complete the impulse followed by a sharp reversal which can take Nifty again to 8330-8380 levels.

Expiry is just over and tomorrow is first day of June expiry. There are often confusing waves on expiry day. So, I had shown the counts which are most probable as per my understanding, watch the formation of waves tomorrow for clear immediate direction.

If the bounce from low 8270 which is shown as waves ‘abc’ on 2nd chart is actually 1, 2 and 3 and wave (5) is already completed at 8270 then we can also see higher levels without breaking below 8305. So, watch the opening and waves after opening for further direction.

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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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