Nifty Update

Nifty Update

As i have indicated in my earlier posting that the wave patern indicated by me would be negated if nifty moves above 5700. The reason being the wave-4 should in no case move into the region of wave-1. Considering this, i have to change both the higher wave and lower wave structure. I have thought of different alternatives and it is only in formation of the triangle be it contracting triangle or the expanding triangle the wave-4 moves into the area of wave-1. In the present case it appears that we are forming an expanding triangle which is indicated in the chart below. it appaers that we have compleated wave-3 and might have compleated nearly 60% of the wave-4 and after completion of which the wave-5 would start and i happens to be the most distructive of the all and the longest of the all. The targets etc., would be furnished in my comming weekly updates. This is the best alternative which i can see in the current schenario. The same pattern has formed between jan to may 2004 and the market has tanked in may 2004. so we have to see whether the same would be repeated or not. so just wait and watch. the current wave has all chances of seeing 5900-5950 levels. so another 100 to 150 points from current levels.

NIfty

Nifty Elliotte Wave Update

The movement of nifty is puzzling every body and also its stuck in a range, giving headaches to the traders and investors. we are seeing one day gap up another day gap down, this coupled with very reduced volumes is just increasing the headaches. In these times of uncertainity and absence of clear picture we has to see what elliotte is telling or indicating.

Elliotte wave update has been given in the chart above and it appears that we are in the third of the third wave and in the third of third we are forming a fourth wave after which the market has all chances of opening down wards towards 5000. it appears from the above and as per the elliotte that we are forming a triangle for the last one month or so the reduced volumes are also indicating that we might be forming a triangle and also every body is loosing interest in the market as it is moving in a close tight range this is the peculiar feature of the triangle( where volumes reduce considerably). it appears that we might have compleated wave four of the triangle and we are moving up towards completion of wave five of the triangle and after which the gates downward should open up taking market towards 5000 and probably sub-5000 levels so wait and watch. you might be wondering why it should move down and not up. Generally in a triangle the break out would be in the direction of the wave- two of the triangle and the wave two is down wards giving an indication the break down would towards 5000 down wards. so keep a close watch on completion of fifty wave. please note the volumes today were also lower that all previous days. So have patience we would get a very very good shorting opportunity.

M.Sri Mahidar
Trend is frind.

To day i would be giving the two alternatives.


Alternative -I

Under this alternative the details of the wave break up is given in the chart above. as per this we are still in the third wave of third wave and in that also we are in the third wave. As per this still we have some distance to go till it completes the wave and which has all possible chances of seeing 5000 or sub-5000 levels also. we have to see whether we are forming this alternative.

M.Sri Mahidar

Trend is Friend.

Nifty ELliott update

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