Nifty Anticipated Happened

 Nifty daily chart

Nifty 2 hour chart

Analysis

In my previous update I had mentioned that, "Nifty is expected to tumble now in the range of 17000-16800 over short term with the strong negative bias."

The index made a low of16850 thereby achieving my level- Anticipated Happened

To read my previous article on Nifty, click on the below link

https://www.marketanalysiswithmeghmody.com/2023/03/nifty-elliott-wave_11.html

As seen in the above daily chart, prices are moving precisely in a falling channel which is a negative sign. However, the index has arrived near to the support of the channel and it is likely that the benchmark can show signs of bounce back. ADX continues showcase that the downside strength is optimum.

From 2 hour chart, prices are forming a reversal pattern at the bottom but as of now there is no price confirmation to it which makes this pattern not feasible. On the higher side the benchmark has a crucial resistance of 17305, if that is taken out then the entire pattern changes and then there can be three scenarios which will open.

As per Elliott Wave, 

Scenario 1: If 17305 is not taken out in the up coming bounce and market consolidates below this level then wave C is still on going which can tumble further.

Scenario 2: If the resistance of 17305 is taken out, then the pattern becomes W-X-Y and then fresh leg on the higher side will open which can again come back towards 17400-17600 levels.

Scenario 3: After wave 2 prices are moving down in an impulse and then if it makes another attempt to go down after the up move which can eventually become a corrective pattern and then wave c can move higher thereby completing wave 2 close to 17400-17600 range..

The summation is Nifty is poised to give a bounce which can push prices higher, any move above 17305 will  push prices further towards 17400-17600 range.