What’s Nifty planning to do next?
Updated
After the budget on July 23, 2024, Nifty experienced a slight retraction. But, today (July 26, 2024), it recovered and created an all-time high of 24, 861.
This raises the question, “What’s Nifty planning to do next?”
For a change, let’s try to decipher Nifty’s next move using Neo waves. We begin the count from the Election results’ day low hit by Nifty on June 4, 2024.
As, Nifty moved ahead, we became more convinced that it is creating a Neo wave Diametric pattern (bowtie), which is a 7-legged structure. This quote from neowave.com, will help you understand why we considered it a diametric pattern – “As the time between waves becomes very similar (but price differences still exist), a Diametric is your best option.”
Nifty seems to have completed the A-B-C-D-E-F legs of the diametric and is right now in the G wave. So, how far will the G-wave extend?
Ideally, G-wave would be 61.8% of A, but it can also be truncated at either 38.2% or 50% of A.
In case of Nifty, a truncated G wave of 38.2% comes to around 24,950, 50% is around 25,250, and 61.8% is around 25,500. We think that this G wave will most likely hit the 50% mark.
Only time will tell where the G-wave will culminate, but once it hits the 38.2% mark, we should become cautious and begin looking at price action more carefully.
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.
This raises the question, “What’s Nifty planning to do next?”
For a change, let’s try to decipher Nifty’s next move using Neo waves. We begin the count from the Election results’ day low hit by Nifty on June 4, 2024.
As, Nifty moved ahead, we became more convinced that it is creating a Neo wave Diametric pattern (bowtie), which is a 7-legged structure. This quote from neowave.com, will help you understand why we considered it a diametric pattern – “As the time between waves becomes very similar (but price differences still exist), a Diametric is your best option.”
Nifty seems to have completed the A-B-C-D-E-F legs of the diametric and is right now in the G wave. So, how far will the G-wave extend?
Ideally, G-wave would be 61.8% of A, but it can also be truncated at either 38.2% or 50% of A.
In case of Nifty, a truncated G wave of 38.2% comes to around 24,950, 50% is around 25,250, and 61.8% is around 25,500. We think that this G wave will most likely hit the 50% mark.
Only time will tell where the G-wave will culminate, but once it hits the 38.2% mark, we should become cautious and begin looking at price action more carefully.
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
Nifty hit the 25k mark achieving 38.2% of Wave G. We are now witnessing a retraction.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.