Nifty Elliott Wave Analysis

 Nifty daily chart

Nifty hourly chart

In the daily chart, the index continues to progress as the daily candle along with weekly candle is showing strength. However, it is imperative to be cautiously positive as it is arriving near the overhead supply (marked with downward arrows). The level of 12500 is its preceding high and it is likely that profit booking can be witnessed at this level. Also daily RSI has arrived near overbought zone which suggests that no initiation of fresh long position is advisable at current juncture.

As shown in hourly chart, higher highs and higher lows are still intact with prices moving in a rising channel formation. The only way to identify a reversal is to wait for important supports to break, in this case any move below 12040 will infuse selling pressure dragging it near to 11555 levels over short term.

As per Wave theory, the index moved up in form of wave v which is the last leg of wave c. As of now it is ongoing but this leg has also arrived near to 61.8% from wave 0-iii added to wave iv. Now the second scenario is to count if wave i and wave v are equal in terms of price and time. Even in that case wave i has taken 4 days and wave v which is still ongoing has taken 7 days.

The summation is Nifty is still in positive mode with resistance at 12500. It is unlikely for the index to cross this barrier. Any move below 12040 will accelerate selling pressure which can tumble the index near to 11555 levels over short term.

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