NIFTY - Elliott Wave Outlook

Timeframe: Weekly
NSE NIFTY began an impulsive move after hitting a low of 15183.4. Based on the wave count, the price completed wave (5) of wave (3) at 26277.3 and has since started to decline. The price is currently in a wave (4) correction phase. Let’s switch to the daily timeframe for a closer look at the details.

Timeframe: Daily
On the daily chart with a neckline at 24,750, we’re observing a bearish head-and-shoulders pattern forming. If the price breaks below this neckline, Nifty could drop significantly, potentially reaching the demand zone or surge point of the pattern. However, if the price fails to break this neckline, it indicates weakness in the bearish momentum, signaling a possible reversal

According to the Elliott Wave Principle, if wave 5 is an extended wave, the correction often occurs near sub-wave 2 of the previous impulse, especially if it falls below sub-wave 4. So, 24,570 will be a crucial level for Nifty. We can expect the price to move up by no more than 126% of wave A within the correction. Otherwise, there’s a risk of mistaking wave B for wave 3.

Whatever scenario Nifty chooses, it’s better to let Nifty commit to a clear direction before we commit to the market.

We will update further information soon.