Nifty Elliott Wave Update
6 Sep 2020 ● 08:23 AM
MARKET UPDATE: 7 SEP 2020
Explanatory Note : Wave V of 3 still to take off
Nifty closed down for the week with an engulfing bear but that was not enough to push weekly momentum back into sell mode and we are making higher highs and lows. What has happened from the start of August is that most rallied ended as corrective structures and it maybe that wvae IV of 3 is still going on and so wave V of 3 has not started yet. The move up has 8 legs done now and would require one more push up in the 9th leg to complete an impulse that we can mark as wave 3 completed. So I am not jumping the gun calling this a top of significance yet. I remain open to a test of the uppper Bollinger band that is now at 12058 and rising. In fact the Vth wave if equal to wvae I would go to over 13000. Vth waves can truncate but even then we need a higher high in 5 waves for it to complete.
Bank nifty went back below the 40dema that it had overcome last week. Not what you would like but in any case it did not push the weekly momentum into sell mode and the wave could on weekly charts too is wave iv down meaning that wave v up is pending and needs one more move higher to complete. This should mean a move back to 25232 and higher to complete wave 3 up. The previous swing low is at 21403 as the higher low in the rising sequence that should hold for the trend. In fact the third wave goes to 28600 [3=1] as long as the trend is in tact.