Elliott Wave Analysis Report of Nifty for 01 Jan 2015 by Deepak Kumar

Nifty opened flat today and bounced sharply after opening and traded range bound with positive bias throughout the day. Nifty closed 34 point up at 8282 after registering the high of 8290. Let us see what charts are suggesting.

This is 5 minutes time bar chart of Nifty showing bounce after 8148 which I am assuming as start of next upside impulse.

It seems wave 1, 2, 3 and 4 are already completed and wave 5 is in progress or completed. Wave 5 already achieved its minimum projection of 38% and also traded above top of 3. 61% for wave 5 placed at 8301 and 100% placed at 8351. 100% (above 61%) for wave 5 is rare case as wave 3 is already extended.

If I am right at identifying then Nifty can decline  anywhere from 8282-8301 till 8235-8202 levels at least.  We need to see wave (5) closely to see if it is completed or not.

This is 5 minutes time bar chart of Nifty showing bounce after 8221 which I am assuming as start of wave (4).

It seems wave 1, 2, 3 and 4 are already completed and wave 5 is in progress or completed. Wave 5 already achieved its minimum projection of 38% and also traded above top of 3. 61% for wave 5 placed at 8295 and 100% placed at 8318. 100% (above 61%) for wave 5 is rare case as wave 3 is already extended.

If I am right at identifying, then Nifty can start a corrective decline anywhere from 8282-8295.

Conclusion:

Current set up on chart is suggesting some stop on upside and there may be some corrective decline that can show 8235-8202 levels. Profit booking or trailing stop loss should be done for any existing longs. Light shorts (Low Quantity Sell Trade) can also be initiated with small stop loss after identifying latest waves during market hours.

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