Utilizing Elliott Wave theory, I've conducted a thorough analysis of Nifty 50, indicating a prevailing bearish sentiment with a compelling case for an impending correction towards the 21100-21000 range. Here's a breakdown of my analysis:
1. Identification of Ending Diagonal and Subsequent Impulse Move:
- In January 2024, an Ending Diagonal pattern commenced, concluding on March 11th, 2024. This pattern often signifies a terminal move within the larger trend.
- Subsequently, a 5-wave impulse move initiated on March 24th, 2024, suggesting a new directional trend emerging.
2. Observation of Correction Wave:
- Following the completion of the 5-wave impulse move, a 3-wave correction began on March 24th, 2024.
- Currently, the correction appears to be approaching a critical juncture, particularly around the 22250-22300 range, which formerly served as demand but now acts as supply after being broken.
3. Anticipated Reversal and Bearish Momentum:
- Based on my analysis, I anticipate a reversal from the aforementioned supply-turned-demand range. The invalidation point for this projection stands at 22530.
- The reversal is expected to trigger a new 5-wave impulse move, indicative of strengthening bearish momentum.
4. Target Projection:
- My analysis suggests that this upcoming impulse move will likely drive Nifty 50 towards the 21100-21000 range.
- These levels represent significant support zones and align with the broader bearish sentiment I've identified through Elliott Wave analysis.
5. Risk Management Considerations:
- While my analysis supports a bearish outlook, it's crucial to implement robust risk management strategies, including setting stop-loss orders and monitoring market developments for any potential shifts in the prevailing trend.
In conclusion, my analysis underscores a compelling case for a bearish trajectory in Nifty 50, with a projected correction towards the 21100-21000 range. Traders and investors should remain vigilant, adhering to risk management protocols while monitoring price action for confirmation of the anticipated trend continuation.
1. Identification of Ending Diagonal and Subsequent Impulse Move:
- In January 2024, an Ending Diagonal pattern commenced, concluding on March 11th, 2024. This pattern often signifies a terminal move within the larger trend.
- Subsequently, a 5-wave impulse move initiated on March 24th, 2024, suggesting a new directional trend emerging.
2. Observation of Correction Wave:
- Following the completion of the 5-wave impulse move, a 3-wave correction began on March 24th, 2024.
- Currently, the correction appears to be approaching a critical juncture, particularly around the 22250-22300 range, which formerly served as demand but now acts as supply after being broken.
3. Anticipated Reversal and Bearish Momentum:
- Based on my analysis, I anticipate a reversal from the aforementioned supply-turned-demand range. The invalidation point for this projection stands at 22530.
- The reversal is expected to trigger a new 5-wave impulse move, indicative of strengthening bearish momentum.
4. Target Projection:
- My analysis suggests that this upcoming impulse move will likely drive Nifty 50 towards the 21100-21000 range.
- These levels represent significant support zones and align with the broader bearish sentiment I've identified through Elliott Wave analysis.
5. Risk Management Considerations:
- While my analysis supports a bearish outlook, it's crucial to implement robust risk management strategies, including setting stop-loss orders and monitoring market developments for any potential shifts in the prevailing trend.
In conclusion, my analysis underscores a compelling case for a bearish trajectory in Nifty 50, with a projected correction towards the 21100-21000 range. Traders and investors should remain vigilant, adhering to risk management protocols while monitoring price action for confirmation of the anticipated trend continuation.