Nifty Elliott Wave Update

MARKET UPDATE: 07 MAR 2021

NIFTY
TIME	TREND	UP LEVEL	DOWN LEVEL
Medium term trend	Up	15744-16060	14467

Explanatory Note: If Higher highs and higher lows are a trend, it is not violated till 14661 is not broken.

Nifty closed positive after 2 down weeks and should be starting wave III of 5 upwards from here. The 2-week decline was a-b-c and not impulsive so the odds of a bullish outcome remain higher. So this week's low of 14467 may become the new pivot. The final support is closer to 14000 near the 20-week average and lower channel line. But having made a higher low at 14467 we may be set up to go back to new highs near 15744 at the upper Bollinger band and above that to the top end of the channel at 16060.

Bank nifty is due to start wave III of 5 upwards from the low of 34658 made recently. Wave III should first go to the upper band near 37742 and then the upper channel line at 40745.

The midcap index has taken center stage as it completes a 5th consecutive positive week. This has pushed the weekly momentum back into buy mode. No negative divergences yet to pay attention to on momentum indicators. So stocks continue to outperform.