The NIFTY 50 index in India is being analyzed using Elliott Wave theory on the daily chart. The analysis reveals that the index is currently trending, exhibiting an impulsive movement pattern. The primary structure identified is navy blue wave 3, which indicates strong and ongoing upward momentum in the market.

Currently, the market is within gray wave 5, which forms part of the larger navy blue wave 3 structure. This suggests that the index may be in the final stages of the current impulsive sequence, as wave 5 typically signifies the conclusion of an upward trend in Elliott Wave theory.

Prior to this phase, the market completed navy blue wave 2 of 5, a corrective wave that generally precedes the next significant upward movement. With navy blue wave 2 now concluded, the analysis suggests that navy blue wave 3 has begun, indicating a continuation of the bullish trend.

The market's direction aligns with the next higher degree, reinforcing the development of navy blue wave 3. This wave is expected to propel the index higher as it progresses through the impulsive phase.

A critical level to monitor in this analysis is 23,826.0, identified as the wave cancel invalid level. Should the index fall below this threshold, it would invalidate the current Elliott Wave count, signaling that the anticipated upward movement may not unfold as expected. This level serves as a crucial point for traders, as a breach could imply a potential shift in the market's structure.

In summary, the NIFTY 50 index is in an impulsive trend phase, with navy blue wave 3 currently developing after the completion of navy blue wave 2 of 5. The bullish momentum is expected to persist, with 23,826.0 being a key level to monitor for any possible changes in market direction.

Elliott Wave Analysis Trading Lounge Weekly Chart
NIFTY 50 (INDIA) Elliott Wave Technical Analysis

FUNCTION: Trend
MODE: Impulsive
STRUCTURE: Navy blue wave 3
POSITION: Gray wave 5
DIRECTION NEXT HIGHER DEGREES: Navy blue wave 3 (initiated)

DETAILS: The completion of navy blue wave 2 of 5 has been observed, and now navy blue wave 3 is actively unfolding.

Wave Cancel Invalid Level: 23,826.0

The NIFTY 50 index in India is currently being analyzed on the weekly chart using Elliott Wave theory. The analysis indicates that the index is in a strong trend mode, following an impulsive pattern. The primary structure identified is navy blue wave 3, signaling significant upward movement in progress.

At present, the index is positioned within gray wave 5, which is part of the larger navy blue wave 3 structure. This suggests that the index is likely nearing the final stages of its current upward trend, as wave 5 typically concludes the impulsive sequence in Elliott Wave theory.

Before reaching this stage, the market completed navy blue wave 2 of 5, a corrective wave that generally precedes the next impulsive wave. With navy blue wave 2 now complete, the market has entered navy blue wave 3, indicating the continuation of the bullish trend to a higher degree.

The direction of the next higher degrees is aligned with navy blue wave 3, reinforcing the expectation of continued upward momentum. This wave is anticipated to drive the index further upward as it progresses through the current impulsive phase.

A critical level to monitor in this analysis is 23,826.0, identified as the wave cancel invalid level. If the index were to fall below this threshold, the current Elliott Wave count would be invalidated, suggesting that the expected upward movement might not unfold as anticipated. This level serves as a vital threshold for traders, as a breach could indicate a potential shift in the market’s structure.

In summary, the NIFTY 50 index is in a strong impulsive trend phase on the weekly chart, with navy blue wave 3 currently unfolding after the completion of navy blue wave 2 of 5. The bullish momentum is expected to continue, with the 23,826.0 level being a crucial marker for any potential changes in market direction.

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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