The daily chart of the NIFTY 50 INDEX, based on Elliott Wave analysis, indicates a bullish trend. The price movement is currently in an impulsive phase, reflecting strong upward momentum. The present wave structure is identified as Orange Wave 3, a segment of a larger pattern – Navy Blue Wave 1. This placement signifies the index is in a strong upward trend within a broader bullish framework.

According to the analysis, Orange Wave 2 has likely finished its corrective movement, transitioning into Orange Wave 3. Typically, this phase is the most extended and powerful in the Elliott Wave cycle, often resulting in notable price increases. Traders should focus on the progression of Orange Wave 3, which evolves under the broader Navy Blue Wave 1.

An important level to monitor is the invalidation point at 21779. A decline below this threshold would nullify the current wave count, necessitating a reevaluation of the bullish perspective. Until then, the wave structure supports a continued upward movement.

The technical configuration suggests the NIFTY 50 INDEX is positioned for a sustained uptrend. With Orange Wave 3 now active post the completion of Orange Wave 2, the impulsive nature of this wave hints at strong buying pressure and a high potential for further gains in the near term.

NIFTY 50 INDEX Wave technical analysis

Function: Bullish Trend.

Mode: Impulsive.

Structure: Navy Blue Wave 1.

Posiion: Gray Wave 1.

Direction next lower degrees: Navy Blue Wave 2.

Details: Orange Wave 4 seems complete. Navy Blue Wave 1 of 1 is currently active.

Wave cancel invalid level: 21779.

The weekly chart analysis of the NIFTY 50 INDEX presents a strong bullish trend. Price action is in an impulsive phase, showing significant upward momentum. The wave structure is currently identified as Orange Wave 3, which is part of a larger pattern – Navy Blue Wave 1. This suggests the index is moving through a strong advancing phase in a wider bullish market trend.

Technical indicators confirm the completion of Orange Wave 2’s corrective cycle, giving way to Orange Wave 3. This segment is generally the most powerful in the Elliott Wave framework, frequently delivering substantial price growth. Analysts should monitor the development of Orange Wave 3 within the broader Navy Blue Wave 1 formation.

A key level to track is the invalidation point at 21779. If prices fall below this threshold, the current bullish outlook would need to be revised. Unless that occurs, the wave setup continues to indicate further upside movement.

The current technical outlook positions the NIFTY 50 INDEX for continued gains, with Orange Wave 3 advancing post-Orange Wave 2. The impulsive traits of this phase suggest strong institutional interest and the likelihood of considerable upward progress in the near term.

NIFTY 50 INDEX Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

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

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.