NIFTY - Jun 4th to Sep 25th - EOD Analysis

NIFTY has gone through an uptrend from Jun 4th till date, on Elliot wave analysis front the index is going through the last impulsive wave 5 pattern

The larger wave phase of 5 may take NIFTY to 5500 to 5550 levels before the month end with the regression line showing the trend that may be followed in next couple of trading sessions. Before Sep 25th we should be seeing such levels and that will complete the entire 5 wave larger impulsive pattern

Wave 1, inturn followed a smaller 5 wave impulsive pattern and then the wave 2 corrective pattern had A,B & C pattern.

Wave 3 again showed the next smaller 5 wave pattern and then followed by wave 4 corrective wave pattern of A,B & C. 

Final smaller wave 5 expected move

1. Now the Wave 5 is on and it will again have 5 smaller impulsive wave formation. Out the 5 smaller waves, the first wave is almost over and now a smaller correction will set it which may again take NIFTY back to 5290 to 5300 levels 

2. After which the next upmove of wave 3 will get close to 5460 and then will have a smaller wave 4 correction which will take it back to 5360 

3. Final smaller wave 5 phase will take it anywhere between 5480 to 5500

Technical Indicators

1. Candlestick moved above the chandelier exits lagging indicator which denotes that it is time to exit any shorts covered before and now is the time to buy NIFTY

2. 63 day exponential moving average line has crossed chandlier line and is well below the indicator line which confirms buy on NIFTY

3. linear regression line showing a positive upward trend which may take NIFTY close to 5500 levels

4. Parabolic SAR has started to show below candlestick charts which indicates a strong buy scenario

5. MACD cross over to happen very soon and then will finally diverge

6. RSI positive trend up by connecting previous lows it formed a steady upward trend which signals and strengths buy situation

Summary

1. Buy NIFTY current levels and keep buying on dips as well, you may also choose to buy NIFTY Sept futures and target 5480 to 5500, keep a SL below 5217