NIFTY: Still some steam left before corrections sets in.

NIFTY WEEKLY ELLIOT WAVE CHART

Starting from the lows of 4534 we had wave 1 as a leading diagonal ending at 6229. Wave 2 corrected to 61.8% + levels and thereafter we are enjoying a wave 3 move. (A possibility was suggested as an alternate count last Aug.)

For now W3 has already moved beyond normal i.e. more than 161.8% of wave 1 next possible extension is 176.2% or 200% at 8091 & 8495.

NIFTY 15 MIN CHART

Now look at the internals of wave three starting from 5105 which appears to be nearing completion. W 3 ii retraced merely 38.2% of W 3 i,  the normal end of wave 3 comes at 6181. If we further go down and look into what looks like a wave 3 v, it is forming an Ending Diagonal and we are at W 3 v (4).

In nutshell, keep an eye on 8091 -8161 range we may have a meaningful correction starting from there.

Happy Trading!

SHEKHAR