As per Elliott wave analysis of
daily chart, Nifty is heading high on ‘e’ wave of the diagonal. However whole
of yesterday Nifty has spent in grinding in a corrective phase. As we discussed
on 10-07-2012
out of the three options, market seems to follow the option I [Please read the
caution from 11-07-2012
post]
Internal subdivisions of this
corrective phase seems like a double zigzag of which w –x are complete. Sub
wave ‘y’ is in the making, of which a-b are done and ‘c’ wave is to be
completed. This should complete around 5290 range.
One line of caution – This
could be a Leading diagonal [I believe so as per the internal wave counts.] of
an ending diagonal to complete the bigger ‘C’.
In either case market should
correct soon after reaching the channel line [or a minor over shoot may occur].
This line is rising every hour/day. If it touches the line today then it may be
around 5380-5400 range. Then it may
retrace the entire rise from 4770 to 5370/5400.
Once confirmed this may indicate that Nifty headed down.
Another way to count this wave
is, ‘e’ has already completed at 5348.45 and the correction is set in. This can
be confirmed with a move below 5257.9 which is the beginning of the ‘e’ wave.
[This can also be treated as an invalidation point].
Yesterday we can see another
interesting observation in the market – in the daily chart Nifty has formed a
Bearish Harami. As usual in candle stick pattern formations, this requires
confirmation today. Once confirmed we may say nifty heading down.
Which form will the market take
now is to be observed.
Nifty Elliott Wave Analysis of daily chart:
Nifty Elliott Wave Analysis of hourly chart:
Nifty Elliott Wave Analysis of daily chart:
Nifty Elliott Wave Analysis of 5 min chart:
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