Nifty opened gap up today and declined sharply just after opening to touch the day’s low of 8599 but bounced gradually after that till end of the day. Nifty closed 84 points up at 8711 after giving lows of 8599 and high of 8732. Nifty also broken simple “abc” pattern with bounce which I was expecting and explained in my yesterday’s report. Let’s have a look on fresh Nifty charts to explore further possibilities.
This is 30 minutes time bar chart of Nifty covering move after high 8996. Yesterday I was expecting the move from top 8996 as impulsive but now it looks like corrective “abc” as Nifty broken the end of first down leg (8705, wave (a)).
Though Nifty bounced sharply today but the upside move after low 8473 still doesn’t looks like a clean impulse yet as it is still slower than wave (c) and doesn’t crossed reflex points. So, there also arise the possibilities of “Complex Correction”.
It may be 1st “abc” cycle of correction from top followed by progress of wave (X) upwards. Wave (X) is mostly a corrective wave but doesn’t carry any particular personality. We also see wave (X) covers full wave (c) of previous “abc” cycle most of the time. 61% of whole “abc” cycle from top is placed at 8777 and start of wave (c) is 8838.
Let me try to identify any wave’s pattern in the whole move after end of wave (c) (from 8473).
This is 5 minutes time bar chart of Nifty covering move after recent low 8473. As I explained above, move after low 8374 doesn’t looks like a clean impulse. Neither is it a simple zigzag. Nifty declined today from top but bounce again above high broken the simple “abc” pattern here.
So, here again arises the possibility for complex correction. We need to wait and see where this up move started from today’s low 8600 ends and if it touches 8645 again or not. 100% and 123% projections shown on charts are for progressing impulsive started today from 8600 with respect to previous impulse from 8375 to 8652. Please read the chapter “Types of Corrections” of my book “Practical Application of Elliott’s Wave Principles by Deepak Kumar” to understand the wave counts on chart.
The structure of charts is showing a formation of complex pattern which still needs confirmation. We need to wait till we identify any clear sign now. Nifty charts will show the signs tomorrow or later for exact pattern and we need to have patience to wait for that.
But charts are not suggesting any good upside for new high yet and decline below 8473 is still on the cards, though it is early to predict the top.
Any Intraday or short term trade can be done anytime during live market hours after identifying smaller waves.
Note: All of my analysis reports are a day advance. I always prepare analysis reports for next day and posts in advance. But the wave’s patterns can change anytime during live market hours which you need to identify yourself. Charts always gives signs of changing patterns in advance which you need to identify but you can identify it only if you are aware of rules.
So, please concentrate on Learning Elliott Wave Analysis yourself so that you can identify best trading opportunities during live market hours and identify any change in wave’s patterns. My advance reports can guide you through the way but it is only you who need to identify real opportunity during live market hours.