Nifty 50 correction – where will it end?
Sep 11, 2024
In our last update on Nifty 50, we predicted that the upward move of B wave should end near 78.6% Fib level, which is the max it would go.
The correction of B wave post Zig-zag A retraces anywhere between 38.2% to 78.6%. The B wave followed this rule and ended at 61.8%.
After the completion of B wave, we saw the beginning of C wave. Wave C follows the following two rules: -- Wave C is often equal to wave A in length or a Fibonacci ratio of 61.8%, 100%, or 161.8%. Also, Wave C should not be shorter than wave A.
As per the above rules and the main characteristics of a Zig-zag correction being that it fits within a channel, the downside target of C wave could be 61.8% Fib level comes to 24,772.
If C wave has to touch the bottom of the channel, it would go down by a further 50 to 60 points, so the target could be around 24,725.
Also, the C wave would be a 5-wave pattern like the A wave.
Let’s see if Nifty 50 follows the rule or not.
Share the name of the stock you're interested in, and we'll be more than happy to conduct a thorough analysis for you.
Disclaimer: We are not SEBI registered. The content presented here is based on personal opinions. Conduct your own research and consult with a qualified financial advisor before making any investment decisions.
In our last update on Nifty 50, we predicted that the upward move of B wave should end near 78.6% Fib level, which is the max it would go.
The correction of B wave post Zig-zag A retraces anywhere between 38.2% to 78.6%. The B wave followed this rule and ended at 61.8%.
After the completion of B wave, we saw the beginning of C wave. Wave C follows the following two rules: -- Wave C is often equal to wave A in length or a Fibonacci ratio of 61.8%, 100%, or 161.8%. Also, Wave C should not be shorter than wave A.
As per the above rules and the main characteristics of a Zig-zag correction being that it fits within a channel, the downside target of C wave could be 61.8% Fib level comes to 24,772.
If C wave has to touch the bottom of the channel, it would go down by a further 50 to 60 points, so the target could be around 24,725.
Also, the C wave would be a 5-wave pattern like the A wave.
Let’s see if Nifty 50 follows the rule or not.
Share the name of the stock you're interested in, and we'll be more than happy to conduct a thorough analysis for you.
Disclaimer: We are not SEBI registered. The content presented here is based on personal opinions. Conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Note
There was some problem with trading view while uploading this idea, so the channeling and Fib levels are not visible. Please refer to the idea on Nifty published on Sep 10, 2024, to view the channeling and Fib levels.Note
This study stands invalidated as B has exceeded 100% of A wave, which was a zig-zag pattern.
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