Nifty - Elliott Wave Analysis

Hourly chart

Nifty is falling is a persistent trend, quite similar to what [c] waves are. We are forming a small positive divergence on hourly TA, but that could give a small corrective bounce only, as the wave count suggests that there is one more wave still pending to this down move. So we may pause here for a while, and fall once again to complete a satisfactory 5 wave decline. The level of 4880 is an important one, as it marks the [c] == [a] level, so another addition to the cluster of supports, now ranging from 4950 - 4880. 

On daily chart too, we have not formed any positive divergences yet, which are typical to price reversals. So as we rise and fall once again, we might get that divergence on daily chart.

If we are subdividing in wave (3) then there might be considerable room on the down side, also the pattern we are counting on larger time frame will also require modification. So either we are close to a bottom or right in the middle of a big decline, sounds two faced, but thats what market gives you, probabilities!!!

What we can do though, is watch how market performs at these critical levels, look for signs of reversals, trail our stop losses, and let the market decide which way to go. Following the market as best as we can, is the only thing which will keep us in the game long enough and help us be on the winning side eventually.

Daily Chart