Minimum target of Nifty at 6724.60
Technical Analysis,Research & Weekly Outlook
Technical Analysis,Research & Weekly Outlook
(Oct 21 to Oct 25,2013)
Nifty-EOD Chart (18-Oct-2013):- |
| Just click on chart for its enlarged view |
1- Bottom formation at 5118.85 on 28-08-2013 and Wave-1 beginning
2- Wave-1(6142.50 on 19-09-2013) completion and 'ABC' correction continuation.
3- Wave-2(5700.95 on 21-10-2013) completion and Wave-3 continuation.
4- Wave-3 continuation and recent top formation at 6201.45 on 18-10-2013.
Conclusions from EOD chart analysis
Impulsive Wave-3 continuation and as per Elliot Wave theory "Wave-3 should not be shorter than both Wave-1 and Wave-5" therefore Wave 3 will move up more than Wave-1.
Wave-1 gained 6142.50-5118.85=1023.65
Wave-3 started from 5700.95 and and as per Elliot Wave theory it should gain minimum 1023.65 because it can not be shorter than Wave-1 therefore its minimum target is at:-
5700.95(Wave-3 started)+1023.65 Wave-1 gained=6724.60
As sentiment is heated and Short term indicators are overbought therefore some intraday/very short term corrections may be seen any day but as per Elliot Wave theory Nifty is well set for rally towards minimum target at 6724.60.