Elliott’s Wave Analysis Report of Nifty for 18 Sept 2014

Nifty opened Gap Up today after 110 points fall of yesterday. But Nifty filled the gap within first hour of trade and bounced again sharply to 7990 followed by a range bound movement whole day between 7950-7970. Though, Nifty opened Gap up today and closed in 40 points green but still charts are not convinced for any big move. Let me show you the latest scenario on charts.

Though I tried to label counts on chart but I am not fully convinced with it. If I take move from 8179-8058 as wave (a), 8058-8114 as wave (b) and wave (c) downwards from 8114, here wave (c)  already projected 150% of (a) and 161% placed at 7918. This set up is convinced till now as “c” can go anywhere till 161%-200%-238%.

But if I see inner waves of “c”, by structure and calculations, sharp move with Gap from 8114-8029 can be taken a “1” and 8059-7925 can be taken as “3”. But personality of wave 1 (marked in red circle) is not convincing, normally we see wave 1 slower than wave 3 (though possibilities are always there, but I am going with usual probabilities).

Again if I assume wave “c” already completed and latest move after hitting low of 7925 is wave 1 and 2 (marked under blue circle) upwards, this is also not convincing as wave 3 should not be slower after completion of wave 2.

But if I draw trend line joining Tops and Bottoms of this correction, it forms an expanding Triangle (shown by blue lines). Nifty may move within this expanding triangle for some time.

Conclusion

Overall, I am not convinced of any clear direction till now and would like wait till I find a convincing pattern. I am avoiding trade from last 4-5 session as stop losses may hit. Charts are showing range bound volatility in 7910-8040 range

Analysis by Deepak Kumar @ www.sweeglu.com