Nifty Path Ahead by using Advance tools

Advanced Elliott wave – Neo wave helps to understand the overall maturity of trend and provides the probable path prices can follow. It is important to combine the application of wave theory along with price action for the clear trade setup and to stay objective.

Following research on Nifty is picked up from Agni Nifty Short-term Update dated on 26th December 2024 which our subscribers receive daily before market opens.

Nifty Daily chart as on 26th December 2024.
Nifty Hourly chart as on 26th December 2024.
Nifty Advance Decline ratio chart
Nifty since past 13 consecutive days have still not managed to close above the prior day’s high with a low above the prior low and high above the prior high. So, 3 candlestick rules have been bearish for 13 days in a row. Post the sharp selloff, prices are now consolidating in a range of 23630-23870 since the start of this week.

As per wave perspective, this ongoing consolidation might be in wave d. Break below 23630 followed by 23530 will indicate that wave d has completed on the upside and the next leg has started unfolding on the downside in form of wave e for trend backwards to 23330 or lower levels.

Above Advance/decline ratio chart is consistently flat which suggests lack of conviction amongst buyers and sellers which leads to low momentum in the index. Volatility can again start increasing post the consolidation breakout. So, for now one should trade cautiously. In the current market it is best to create bear strategy on options once the key level of 23630 levels breaks which will minimize the risk and also will ensure to ride the trend.

In short, overall trend for Nifty to continue to be sell on rise unless prices give a close above 23870 which will indicate short term pullback. A breach below 23630 followed by 23530 downward trend will resume.

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