Thursday, February 23, 2012

Nifty - Elliott Wave Analysis.

Daily Volatility
The daily chart for Nifty has Bollinger Bands applied to it. It can be seen that both the bands are quite a distance apart after the stupendous approx 25% rally. The upper and lower bands need to catch up and narrow the gap down for some consolidation.

Hourly EW
The hourly chart shows my EW markings. We can see that we have completed the wave I of this expected new up move. Also we have broken down from the channel in which prices were rising so consistently. Now we need to target the ends of previous 4th waves atleast in what could be the wave II, correcting the wave I. We have fallen in 5 waves to start with, now further downside is expected atleast another 5 waves down.

Hourly Support & Resistance
The supports as mentioned above should come at bottoms of previous 4th wave i.e. wave [4] and wave (4) of [3], around 5350 levels and below that 5077 levels. Also we are breaking a rising trend line which held the prices for almost 2 months.

Hourly Fibonnacci
The Fibonacci relations suggest that wave [3] was 300% of wave [1]. Wave [5] was 100% of wave [1]. Now we should retrace a fibonacci level of this wave I. We may see good support around 23.6% levels. Eventually we might end the complete correction within the 38.2% to 61.8% band.



  1. hi aniruddha,
    Nice to read your update again...
    I was wondering where were you??
    I am seeing one more possibility in nifty and might be possible this is not bull run but a bear trap rally. in weekly chart there was head and shoulder and its neck line is just from where nifty turned down. I am mailing you chart pls check ur mail id

  2. Thanks for the update, Mr. Aniruddha.

    (I was) Missing them :)

    With Regards,

  3. Aniruda.... I suppose the impulse the bigger wave count has the last 5 wave pending....

    I suppose we are in the wave 4 correction....

    1. That is a possibility. Even in that case we might correct till 4425 - 4350 to start with.


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