Nifty – How to capture a 650 Points move using Elliott wave theory?
Nov 29, 2021
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Nifty has shown a crash of more than 640 points since 22nd November 2021 and were able to capture most of it.
We published Nifty analysis in "The Financial Waves Short Term Update" Check out below the detailed research report that we published
Nifty Daily chart (18th November 2021):
Nifty 60 mins chart (18th November 2021):
Wave analysis: Following was mentioned in the morning research report before markets opened
On the daily chart, it is for the 3rd consecutive session wherein prices have formed bearish candlestick pattern. As per bar technique, it is failing to move above the highs of prior bar, so as long as this continues, daily bias will remain on downside. As per this, 17945 is the important resistance. Now prices have approached towards the neckline of the Head and Shoulder pattern and at the same time it is testing lower Bollinger bands. Thus any close below 17700 followed by violation of prior swing lows of 17613 level will form lower highs lower lows pattern and suggest further weakness is building up.
On the 60 mins chart, prices have taken out the last leg of down move below 17798 levels and closed below the same. This suggest that minute wave e of Neutral Triangle Pattern has completed at the highs of 18207 level. Further confirmation of the same we will get below 17613 level. It has also violated the Ichimoku Clouds which is a sign of negativity whereas Bollinger bands has expanded on downside which indicates trending move on lower side is ongoing. One can use middle bands as an immediate resistance point which is placed at 17900 level. On higher side, 18130 will act as the big hurdle now.
In short, Nifty is on verge of breaking below the H&S Pattern. Break below 17700 followed by 17613 level will confirm this and suggest that wave d on daily chart has started. On a conservative basis, prices can move lower towards 17230-17210 zone where equality with the fall from 18604 to 17613 level is placed. Any move beyond the same will open target towards 17060 level where 50% of the prior rise from 15513 to 18604 level is placed.
BANG ON!
Happened: Nifty 15 mins chart (29th November 2021):
Happened: Nifty moved precisely as expected. After breaking below 17700 – 17600 levels there was a crash and prices were down more than 640 points up to the target of 17060. In fact Nifty made a low of 16785 level !
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