Nifty: Elliott Wave Forecast

Nifty Daily chart

Nifty hourly chart

In my previous update dated 4^th May 2020, I had mentioned that, “Only a move below 9260 can stumble this index till 9100 for short term. For medium term the bias is firmly negative which can drag it till 8030-7900 levels.”- Anticipated Happened.

Here is the link of my previous article: https://www.marketanalysiswithmeghmody.com/2020/04/nifty-elliott-wave-analysis.html

In the above daily chart of Nifty, the index is now moving in a negative direction, currently it is in a counter trend, once it is completed it will continue to falter. It is difficult to move above 9500 which is 61.8% retracement of the previous downfall of 9889-9116.

From hourly analysis, a bearish island reversal is seen (circle) which opens negative possibilities, prices after a steep fall from the top of wedge pattern is now witnessing s sideways action, the capping to this pattern is at 9400-9500 levels. Stochastic is moving out of the overbought zone and now can move down till oversold terrain.

As per wave theory, the index has completed wave a at 9889 and it is now moving in wave b which is corrective in nature and has completed wave a and wave is ongoing, once wave b is terminated wave c lower will start.

The summation is, there can be a push in prices which can soar it near about till 9400-9500 price range, which can be a bull trap. Any reversal from this particular price range will drag prices near till 8900 levels over short term.

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