Nifty: How to derive targets using Gann and Neo wave!

We had used various advance techniques to catch a current up move in our last month “The Financial Waves Monthly Update” research report. Check out the research we had published on 14th August itself.

Nifty Daily chart as on 14^th AugustWave analysis as on 14^th August

Nifty in prior week closed below the earlier candle lows suggesting possible profit booking over short term. Low made in 31^st July week is at 19296 levels and if the same is broken on closing basis we can expect move to 18838 which is Gann square of 9 level. Nifty is at important juncture as of now as on 14^th August it just whipsawed around this crucial level and bounced back. On upside 19800 is immediate hurdle and we can expect range bound move between 19290 – 19800 levels in this week before any directional move is seen. Break of this range will set the trend in that direction. It is best during such times to trade light and form Options strategy for range bound or consolidation movement.

Nifty 1^st daily chart shows that prices rose in the form of wave (c). The entire pattern can be either a Diametric or a Triangle which started post completion of wave (x) low near 16700 levels in October 2023. This wave (c) looks to be in matured stages of up move as the recent fall has just flirted around 55 days of Time cycle low where wave x is marked. Prices found support near 19290 levels for now but breach below it will indicate that the top at 19990 will not be broken until next cycle low which is only by 25^th September 2023. So we are now at inflexion point where bulls have to defend the lower zone of 19250 – 19290 on closing basis.

Looking at the overlapping fall we still think this fall as only wave b and post its completion we will see wave c on upside.

We are entering interesting times from here on. We turned super bullish near 17060 and now the trend on upside looks matured. Any close below 19290 levels then we can expect move to Gann level of 18838 followed by Head & Shoulder target of 18500. whereas over short term move above 19600 will open targets for 19952 Gann levels.

Nifty Daily chart happened as on 13^th September

Happened

Nifty took support near 19250-19290 and bounced back on the upside and achieved our target of 19952. Prices moved much higher by making high of 20110.35. As we mentioned in our Monthly research report that the fall that we saw can be in form of wave b and post completion of which we can expect a rise in form of wave c. The same has happened. So, one may create effective trade setups by combining Neo wave and Gann levels.

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