Nifty is moving with high volatility and has failed to close above prior day’ high for 8 consecutive days in a row.
During such volatile moves it is best to combine techniques of advanced Elliott wave – Neo wave along with Time cycle and understand the probable path.
Nifty daily chart:
Nifty hourly chart:
Nifty daily chart shows that prices post completing the topping Head & Shoulder pattern moved down sharply and almost achieved the target near 23300 levels.
As per Neo wave the move on downside is in form of Diametric pattern that consists of 7 legs. In this pattern usually
- wave g ~ wave a
- wave f ~ wave b
- wave e ~ wave c
Prices are currently in wave e which looks to be subdividing. The sharp rise on upside on 19th November with equally fast reversal indicates wave e is not complete and might still continue for few more days.
Even after 8 consecutive days there is no respite by way of closing above prior day’s high indicate inherent weakness in Indian equities market.
Break above 23800 is must for any positive confirmation that wave e is over and wave f on upside has started.
Overall tone for Nifty is still bearish unless we see close above prior day’s high. Low made during the cycle zone period of 55 days at 23350 is crucial. Any breach and close below this will increase the odds that prices have topped out for another 45 days until 22nd January 2025.
In a nutshell, immediate support is at 23350 and major hurdle near 23780 levels. Below 23350 further downside targets will open in form of ongoing Diametric pattern and will turn daily time cycles on sell side!
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