Tuesday, December 30, 2014

Elliott Wave Analysis Report of Nifty for 30 Dec 2014 by Deepak Kumar

Nifty opened Gap Up today and bounced sharply till 8278 within next 10 minutes of opening and traded with strength whole day followed by a decline of 30 points in the end session. Nifty moved as per my expectations and closed 45 points green at 8246 after registering day’s high 8278. Let’s 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) and (2) of next up move is already completed and (3) is in progress. Within (3), it seems wave (i), (ii), and (iii) are completed and wave (iv) is already completed or about to complete. Wave (iv) corrected more than 23% till now and 38% retracement placed at 8236.

Wave (iv) seems progressing as Triple Zigzag Correction (abc-x-abc-x-abc) which is already completed or about to end and confirmation will be after breakout from upper line (line joining by both (x) waves) of wedge/triangle marked by brown circle. I am expecting wave (iv) as Triple Zigzag Correction because it is making Contracting Triangle Pattern after drawing lines through extremities and I can also see repetition of “abc” cycles in between.

So, if it is actually a Triple Zigzag than Nifty can bounce well above 8278 again after breakout.


Current set up on chart is suggesting upside well above 8278 as Nifty is still within wave (3) whereas wave (4) and (5) is yet to be completed. The stop loss for existing longs should be 8227 spot, below 38% retracement of wave (iii) as wave (iv) rarely retrace more than 38%. Fresh longs can be initiated only if Nifty break above upper line of Triple Zigzag Correction with recent low as stop loss for targets of 8280 and above. 

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