Nifty - Elliott Wave Analysis

1. Nifty staged a sharp rally in last couple of days, marked with important announcements overseas.
2. The next pivot resistances are coming in around 6130 levels, that is another 100 points away from current levels.
3. But will we get there, and complete a classic (a)-(b)-(c) correction, remains to be seen.
4. Right now, I think we are at a critical resistance once again, and this time the levels are 6020-6030.
5. One can get a clear idea by looking at the 2 hour chart below.

1. This chart clearly shows we have closed above the 5970 mark, which in itself is bullish, but the next bout of selling is likely to come in the 6020-6030 area.
2. If we can cross this area, then the next 100 points should come easily.

1. On the longer term though there is a doubt between what is the correct wave structure that is playing out, I have given 2 most likely option according to my limited understanding of the EWP and Neowave Theory, right now there are no preferred count, both are equally likely.
2. One count suggests, that the second X wave is still in progress, and is forming a triangle pattern. Which suggests we should find resistance soon and fall again to complete the triangle. Once this triangle is done, we should see the thrust out of the triangle.
3. Other count suggests, that the second X wave was done at 5477.20. And the wave Z may be forming a triangle or an ED. In both cases we have another couple of wave pending before we see a final top in place.
4. Both the possibilities above are presuming that our long term count of a big flat correction is correct, and will play out. 
5. So far the conditions have not changed to make us alter the count, but should things change, we will be there to inform you about them.