Nifty Elliott wave counts and its Target over short term

Nifty has given a break of an Ending Diagonal Pattern on Friday by closing below it s previous low thus shedding around 50 points. This suggest that down trend is on stealth and broader markets will now lose its charm.

Indicators like MACD is in a sell mode and is moving in sync with the index. Momentum Indicator RSI faced the resistance at 70 and lost its strength, supported by multiple of negative divergence thus indicating that upside is capped. ADX has turned from 40 and -DI has crossed +DI from below which suggests negativity. Nifty is currently below 20 EMA which changed the short term trend from bullish to bearish.

From wave perspective, in an Ending Diagonal pattern (Wedge) wave 4 will always enter in the territory of wave 1 which has happened in this case. Currently market has closed below its previous low which has not happened from past one month. The post pattern implication will be a 5 wave structure on downside and will retrace 50% faster of wave 4 of wave 5.

Small caps and mid caps has breached its previous support in last month and it moving lower by forming a lower high and lower low. Advance/Decline ratio continues to be worst, with advance at 649 and decline at 865.

In short, Nifty now will move lower and can test 50 SMA which is placed at 5900 and the lower trendline of the rising channel  over short term.


Phani Kumar said…
Hey, thanks for the information. your posts are informative and useful.
Large Caps
AGR Dues

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