Nifty witnessed its daily momentum going back to buy mode. The hourly chart above shows an attempt to break out on the upside of this triangle that would be successful once we close above 14770. an impulsive move upwards has been presumed from the low of wave E and apart from any small dip should continue to drive us higher. The only thing still missing are...
The existence of a Triangle in an Elliottwave sense tells us many things. Typically a consolidation that results in a continuation of the previous trend. In this case, the breakout above 14900 on a closing basis would result in a sporadic rally.
After a 3 wave correction the nasdaq composite managed to move up in what even I thought maybe 3 corrective. But maybe it is a leading diagonal and that changes everything. We have extensions long term and a new impulse wave up in wave 3 of 3 started for the Nasdaq. Then it changes the entire perspective for stocks. Bullish gaps as of now typical with 3rd waves
Nifty bounced back to complete a 50% retracement of the fall and that can still be marked as wave B of a zigzag, or 5-3-5 fractal pattern. The next move should be wave C and 5 waves down from 14600 that can attempt to go to 13900 or 13600. Staying below 14600 is key
The sell off we are seeing is wave A of an A-B-C decline from the recent high, and that is in wave iii and wave iv would be a 50-100 point bounce at the most. Wave v of A may go to the lower end of the falling channel near 14100.
As long as bank nifty remains below the wave i low of 14430 we cab mark the recent development as wave iv and wave v down of an impulsive decline maybe pending that can take us back to 33000 or lower