Nifty seems to be in the final stage of the 5th of the 5th wave of C or 1 [to be confirmed by the market]. Now if this is correct labeling then market should not move beyond 5397 for this up move to have one more bounce today. As discussed yesterday the recent shape of the chart is not very convincing and the wave labeling is not satisfactory. Hence we need to keep in mind about the underlying risk and manage it well.
So far the market/chart shape is not convincing for a complete reversal as the wave C is not complete [equality of a=c has a target of at least (5630-4531= 1099) i.e 4770 + 1099 = 5869. Also another way to get the target is the minor waves of the current wave C i.e wave a (5349 -4770=579), 5033+579 = 5612]
As per this any correction could be retracement for the recent up move. This should not move beyond 5033 to remain in the up move.
Daily as well as hourly charts are showing negative divergence since few days and this may bring down the market anytime. So let us be prepared. How much will it go down? This is a question that only market can confirm us.
So far the market movement appears like market is buying more time to complete the up move in terms of time before the up move target in terms of price is complete.
Nifty Elliott wave labeling on daily chart:
Nifty Elliott wave labeling on hourly chart:
Nifty Elliott wave labeling on 5 min chart:
Yesterday afternoon movement appears like market is in the minute 4th wave and is shaping like an irregular correction with wave b moving beyond the origin of wave a. Current wave c is forming like an impulse. Probably the 5 wave move down is complete.
Nifty 9 RSI and 35 D on hourly chart:
So far the market/chart shape is not convincing for a complete reversal as the wave C is not complete [equality of a=c has a target of at least (5630-4531= 1099) i.e 4770 + 1099 = 5869. Also another way to get the target is the minor waves of the current wave C i.e wave a (5349 -4770=579), 5033+579 = 5612]
As per this any correction could be retracement for the recent up move. This should not move beyond 5033 to remain in the up move.
Daily as well as hourly charts are showing negative divergence since few days and this may bring down the market anytime. So let us be prepared. How much will it go down? This is a question that only market can confirm us.
So far the market movement appears like market is buying more time to complete the up move in terms of time before the up move target in terms of price is complete.
Nifty Elliott wave labeling on daily chart:
Nifty 9 RSI and 35 D on hourly chart:
For monthly chart reference one can check out the chart in the following post
ReplyDeletehttp://nifty2wealth.blogspot.in/2012/07/nifty-elliott-wave-analysis-for-17-07.html