NIFTY:  ELLIOT WAVE PATTERN FORMATION.

Nifty if we look at the chart from 4760 onwards is showing the pattern formation of Elliot wave and is just near the top of the wave Five and is expected to enter in the corrective wave a-b-c pattern.

Wave I : Nifty entered in Wave I from 4760 and tested the higher level of 5360 from where short correction was seen in the form of profit booking and II Wave formation. Wave I is the base of the further wave calculation. Wave I difference was 600 points and can be said as 100% base move.

Wave II : After completion of wave I at 5360 Nifty correcte4d and tested the lower level of 5030, where the fall was seen by 325 points and retraced by 54% of wave I. This retracement was near about 50% calculation on closing basis.

Wave III : Wave III started from the lower level of 5035 and move way beyond the top of wave I crossing the level of 5360 and tested the higher level of 5855 which was top formation of the wave III from where correction was seen. Wave III rise by 820 points and retraced by 136% of wave I which was near by 121.6% on closing basis.

Wave IV : Wave IV started from the top of wave III at 5855 and tested the lower level of 5555 level, well above the rule of wave I top and fall was seen by 300 points and exact retracement by 50% of Wave I following the retracement rule also.

Wave V : according to the Rule when Wave III is higher than Wave I by more than 100% wave V is shorter then Wave I and also smaller than 50% of the addition of Wave I and Wave III. Wave V rose by 505 points testing 6060 level and the rise was above 84% of Wave I which also followed the Elliot wave Rule.

Till now we have seen the completion of the Elliot wave Impulsive pattern from the lower level of 4760 to 6060 in the form of five wave and is currently showing the sign of entering in the corrective pattern in the form of a-b-c where it’s just showing the sign of entering and continuation of wave A. Following are the expectation of the further market movement with the past performance and level what can be expected in the corrective move.

Prediction levels in NIFTY in the form of A-B-C Pattern.

Wave A : As per the Rule of Elliot wave, Wave A is near by 100% or 61.8% of the last Wave V, if we calculate the same difference wave A can test 5750 which is 61.8% retracement of wave V where as can test 5555 level which is 100% of the wave V. my personal view is Nifty may test 100% at the level of 5555 because this was the same bottom which was formed by corrective wave IV and there after wave V was commenced. Wave A if we consider 5555 level which may correct by 505 points and retracement by 100% of the wave V.

Wave B : As per the rule wave B is 50% retracement of wave A, calculating 50% of wave A which is 505 points comes to 252 points where adding from the bottom of 5555 level comes to 5810 level nearby.

Wave C : Wave C as per me is mostly more than 100% of wave A, may extend by 121% or 161.8% of Wave A. I will take 121% retracement of wave A which comes to 611 points(505*161.8%) where by the correction may test the level of 5200 level . on other side if we calculate 161.8% of wave A (505*121%) brings to 5000 level mark where the corrective wave may get over.

When we calculate the rise from 4760 to the top of 6060 difference comes to 1300 points and calculating 61.8% bring to 805 points correction bringing the level of 5255 level in nifty. Validate the target of wave C by 121% bringing to 5200 level, lower level target of 5200 – 5250 is expected in corrective wave were buying is expected for uptrend.

WAVE	POINT 1		POINT 2		DIFFERENCE	RETRACEMENT
I	4760		5360		600	100
II	5360		5035		325	54% wave I
III	5035		5855		820	136% wave I
IV	5855		5555		300	50% wave I
V	5555		6060		505	84% wave I
A	6060		5555		505	100 of wave V
B	5555		5810		255	50% of wave A
C	5810		5200		610	121% of wave A