Nifty and Elliott Wave Analysis

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Nifty spot daily chart


Nifty spot 2 hour chart




Analysis

From daily chart, I think there can be halt in the up move for the index and the primary reason behind this is Evening star which was made on Thursday followed by confirmation on Friday indicating that there can be profit booking happening at the top. RSI has been continuously exhibiting negative divergence which was a sign of caution.

In 2 hour chart, Nifty has not only shown negative divergence in MACD but has given a fresh sell signal thus opening negative possibilities. Prices currently are at the support of the moving average and once broken can slump towards 18450-18400 levels over short term.

As per Wave theory, It looks like prices have completed wave v of wave c and can reverse the direction soon to unfold next leg.

The summation is Nifty possibly can reverse from current levels and test the support of 18450-18400 levels over short term. The resistance will be placed at 18900 (closing basis).


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