Nify - Elliott Wave Analysis

Hourly

Nifty got supported around 5170 levels, or so it seems for now. We cant tell if Nifty will turn up from here. On daily chart attached below, we can see RSI and STS turning up, that's the positive side. But one look at the weekly chart and we can see the same indicators turning down from overbought levels. Now giving such conflicting signals is very common for these indicators, and especially in such situations, we cant trust any of then on any time frames. This is where EWP with its patterns come for rescue. I wont say that you can always be on the right side of the market with EWP, but at certain point in time, you can always tell for sure, that you may not be on the right side, and its time to take evasive action.

Now I suggest we wait and watch if the market crosses above the wave (b) top at at 5270 odd levels, and in the short term close above the 5 DEMA at 5225- 30 levels. These early signals will tell us whether markets have any intention to scale up from here. The risk is very small at 5160 it is 50-60 odd points on Nifty, as a positional trader I would take that bet any day, since the possible reward with the minimum target for wave {c}, at 5630 comes around 400 odd points. For those who are long from even lower levels, I suggest to hold on there longs, with SL in the 5170-60 range. But Nifty must close over 5225-30 levels for starters, and must take out 5270 levels soon.

Daily