Nifty 50 Index technical analysis [Video]

Nifty 50 Index chart technical analysis and potential Elliott Wave counts

Nifty seems to have terminated Minor Wave 5 of Intermediate Wave (5), within Primary Wave ((5)) around 25100-50 mark on August 01, 2024. The indice most probably terminated Cycle Wave 3 and should be preparing to produce a meaningful corrective wave lower. 

A break below 21000 mark, which is Minor Wave 4, should confirm the above bearish outlook and a much deeper correction ahead. It is worth noticing that the Elliott Channel resistance has also been tested just above the 25000 mark before prices reversed sharply.  

Alternatively, if prices carve a lower degree corrective wave staying above 21000 mark, it could continue higher and challenge 25100 high. Having said that, probability remains high for a larger degree corrective drop against 25100 mark.

Nifty 50 Index four-hour chart technical analysis and potential Elliott Wave counts

Let us focus on the 4H chart price action since August 01, 2024 high at 25100 mark. The indice has declined sharply carving a potential Minor Wave 1 around 24900 levels or it could print yet another low to complete the impulse wave.  

Also note Minute Wave ((iv)) has been broken around 24070-80 mark, which could be the first sign of a larger correction. It could be still early to conclude a major top at 25100 but upside remains limited from here. If the above wave count holds well, we should see Minor Wave 2 underway soon. 

Alternatively, a lower degree wave iv is being carved right now, which shall be followed by wave v below 23900 to complete the first impulsive structure. Either way, probabilities remain high for bears to stay in control as long as prices stay below 25100 mark.  

Conclusion

Nifty 50 has either carved a major top (25100) at multiple degrees or is close to terminating soon. Traders could prepare for an intermediate degree correction after a break below 21000 mark. 

Nifty 50 Index technical analysis [Video]