Nifty Midcap 100 and Elliott Wave Analysis

 Nifty Midcap 100 2 hour chart.

Nifty Midcap has gained 9.12% in line with Nifty Bank which has also gained 9.94% from the recent bottom made in the month of June 2022.

As shown in the above daily chart, the index has shown tremendous strength and it will continue to surge as the trade setup looks lucrative. The entire fall from the significant top of 2021, prices are moving in a lower highs and lower lows. Recently, in a small rising channel the index is showing some strength. This indicates that the index can move near till its previous pivot high placed at 28500 levels. RSI is inching towards the overbought terrain.

From 1 hour chart, the index is moving in a higher highs and higher lows and precisely in a rising channel. Recently it is bounced from the support of the channel and has also crossed series of resistances (black horizontal line). Keltner channel which moves well in a trending market, the index has closed above the upper channel indicating a fresh buy signal. RSI still has a vacuum to move higher from current levels.

As per Wave theory, Midcap 100 has been moving in a complex correction (w-x-y-x-z). In June it completed wave y and it has opened wave x on the upside. Within wave x it is moving in (a-b-c). In this corrective wave, prices are moving in wave v of wave c of wave x.

The summation is Nifty Midcap 100 is positively poised and can move higher towards the level of 28300-28500 zone.


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