Our weekly outlook on NIFTY had clearly mentioned about a potential Head & Shoulders Pattern on the Chart. Wave ‘A’ and Wave ‘B’ (right shoulder) seems to be in progress BROKEN ABOVE 78% @ 11384 and is NOW EXTENDING TOWARDS ALL TIME HIGH. Wave ‘B’ is most challenging wave in Elliot Wave analysis to predict exact termination. So be cautious on the current uptrend.
Based on the above conditions, the following strategy is recommended:
Nifty is extending towards 10600. However, momentum has come down in the last couple of days and a small or big correction is expected shortly. 11500 is the immediate support and 11411 is the medium term support.
“Aggressive strategy – Follow up : If Nifty breaks below 11500 then light short can be taken with a stop loss of High of the day, for a target of 10411. Hold short position for next day only if breaks and closes below 10411 or else book the profit intraday.” This short entry was made a profit of 70 points
Aggressive Strategy – 1 Friday’s correction seems to be ‘abc’ pattern and therefore unless it closes below 10400 one more upside above 10570 is likely. So if Nifty opens above 10430 and trades above that for some time then light long can be taken with stop loss of 10400 for a target of 10550-600.
Aggressive Strategy – 2 If Nifty breaks below 10400, then “Sell on rise” with stop loss of high of the day for a target of 10300-200 in coming sessions.
Trading strategy suggested in this report is just to show how one can forecast markets using various rules based on Elliot Wave counts for practical trading with good Risk Reward. These trading strategy are not trading recommendation. Any trade based on these trading strategies will be at your own risk and we are not responsible for any loss or profit for the same. Take your own decision. We are not SEBI registered company and we are not providing any calls.