Nifty 50 - Analysis

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01 August 2012: Nifty Elliott wave analysis: If it sustain above 5228 then it can take a move towards 5258 < 5279. Technical support – 5190 > 5150


You must read previous articles and watch above chart carefully to understand this article completely.

Today’s outlook: -
It was firstly hope of reform that took Nifty towards 5340 levels. When it died then it was hope of stimulus in Europe that saved market. Now we have Fed meeting today and ECB tomorrow. These are assumed as the last one and it will dominate the trend. Take a note that we are still directionless and living in full of uncertainty.
It will be known as most unreliable rise if comes. It is true that charts are indicating for a move towards 5260 and then 5279 levels. It can also be concluded that 5190 will act as important intraday support. Trend reversal support will be at 5150 levels only.
It is interesting to see what Fed and ECB will do now. Germany is not looking comfortable in supporting ECB expectation. I am still saying those central governments are just trying to save stock market while they should have tried to do something for economy.

Wave development: -

First view is wave c = 1.618* a = 5343 (Already stated on Friday too in my intraday updates.
Second view is wave c =2.618* a = 5496 (Things can never be so simple in stock market as it looks on charts.)

Take another calculation, wave 1 = 4770.35 to 4898.95 = 128.60 points (Up)
Wave 5 has to comparable with wave 1 or wave 3.
Consider first with wave 1 – Wave 5 = 2.618* wave 1 = end up 5378. So we can say that 5378 will act as tougher hurdle to cross.

Let us explain with Wave 3 – 4847.70 to 5194.65 = 329 points (Up)
76.40 % rise from 5041.70 of wave 3 = 5288, which was roughly the high point of previous day trade.

I like to add one more point. This rally is running from 4770. From a top you need to put support at 38.20% as reversal point. Previously it was coming at 5029, now it is coming at 5090-5100 levels. Now, support if we see a high at 5343 then 38.20% will come @ 5125.

So you should look for 5343 as first hurdle and 5378 as second hurdle. Wave theory suggests that fifth wave advance can continue till 5343 but I am doubtful about 5378. Although I should not close any views completely so I will keep 5496 in my studies. 


I’m Praveen Kumar, a seasoned Technical Analyst and stock market trader with over 25 years of experience in the Indian equity and derivatives markets. My passion for numbers and patterns led me to a dual career as a Mathematics Teacher and market technician. I specialize in Technical Analysis, with deep expertise in Elliott Wave Theory, derivatives strategies, and market forecasting. Over the years, my analysis and market views have been featured on NDTV Profit as a financial guest, along with published articles on reputed financial web portals, sharing insights on Nifty 50, Bank Nifty, and stock market trends. As a trader and analyst, I focus on interpreting price action, chart patterns, wave counts, and technical indicators to deliver precise market levels and actionable trade ideas. My approach blends classical charting with modern analysis tools to help traders navigate market volatility. Through VieCapital, I aim to share daily market analysis, trading strategies, and educatio…
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