Elliott wave analysis of Nifty 50

WEEKLY

HOURLY

 

 

Nifty 50

 

 

Rish asked me if I would take a look at India's Nifty 50 Index, so here we go.

 

Looking at the weekly chart, beginning with the 2008 low at 2,253 we saw an impulsive rally over the next two years to a high of 6,338. This impulsive rally was followed by a triple zig-zag correction over the next year. Price wise wave 2 corrected just over 38.2% of wave 2, while it corrected 50% time wise. Since the bottom of wave 2 we have seen a new impulsive rally higher, but we still lack some real acceleration to the upside, but once wave iii of 3 really gets going we should see a clear break above the base-channel resistance line and a break above the important resistance at 6,357.

 

If we take a look at the hourly chart we can see, that the rally from the wave ii low at 5,567 is clearly impulsive too, but we are close to finish the first impulsive rally and should soon see a correction towards 5,840 and possibly even Down to the blue wave iv low at 5,760 before we can expect the next rally higher towards  6,230.

 

Only a break below the base-channel support line near 5,340 will be of concern and would call for a revision of my Count.