Nifty Elliott Wave Update
3 Jan 2021 ● 11:43 AM
MARKET UPDATE: 03 JAN 2021
Explanatory Note: Wave 5 of 5 is in formation.
Last week I tried to think aggressive, wave 3 of 5 as an extension but sometimes being conservative first is better. We could also be in wave 5 of 5. Now that does not mean it's going to end. Surely a correction can follow but the size will tell us if more extensions on the upside are likely later. For now, 5 of 5 just alerts us to the possibility that the next rally in the coming 1-4 weeks can end as we run into the budget. The weekly momentum made a higher high along with nifty and the top end of the channel at 14640 is a good objective to achieve by then.
Bank nifty is also in wave v of 3 in a final move for this impulse. Since wave i was 4 weeks long by that nature maybe wave v has 3 more weeks to go. v=i is closer to 35280. After a 5 wave advance, a wave 4 pullback or consolidation would be due mostly.