Nifty - Analysis for 30th Dec'24

Key Observations:

1. Elliott Wave Analysis

• The chart shows:
  • A sharp decline initially, indicating an impulsive Wave 3 downtrend.
  • A corrective Wave 4 recovery (consolidation phase with minor upward momentum).
  • A subsequent downtrend and mild recovery near the close might indicate the beginning of a new cycle.
• If this is an impulsive wave, the last down move might be Wave 5 or preparing for a corrective move.

2. Fibonacci Levels

• Use Fibonacci retracement from the highest point (~23940) to the lowest point (~23660):
  • 38.2%: ~23800 (support during consolidation).
  • 50%: ~23810 (potential resistance).
  • 61.8%: ~23830 (strong resistance).
• Extensions for bearish targets (below 23660):
  • 127.2%: ~23620
  • 161.8%: ~23580.

3. Gann Angles

• Gann angles aligned with support and resistance zones:
  • Immediate resistance: 23840 (aligned with Fibonacci 61.8% retracement).
  • Immediate support: 23780 (aligned with trendline and pivot).

4. Pivot Points

• Pivot calculations:
  • Pivot (P): ~23820
  • Resistance levels:
    • R1: ~23850
    • R2: ~23890
  • Support levels:
    • S1: ~23780
    • S2: ~23750

5. Trendlines

• Downtrend line: Connects the highs of the fall from ~23940.
  • A breakout above 23840 signals a bullish move.
• Horizontal support at 23780 suggests accumulation near the close.

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Possible Strategy:

1. Entry:

• Bullish Entry: Above 23840 (breakout above resistance).
• Bearish Entry: Below 23780 (breakdown below support).

2. Target:

• Bullish targets:
  • T1: 23880 (R1).
  • T2: 23920 (R2).
• Bearish targets:
  • T1: 23740 (S2).
  • T2: 23680 (Fibonacci extension).

3. Stop Loss:

• Bullish stop loss: 23800 (below consolidation zone).
• Bearish stop loss: 23820 (above pivot level).

4. Risk-Reward Ratio:

• Ensure at least 1:2 risk-reward:
  • Example: Risk 40 points (stop loss) for a reward of 80-100 points (target).

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Key Takeaways:

1. Immediate support: 23780; immediate resistance: 23840.
2. Use Fibonacci retracements and Gann angles for precise entry/exit points.
3. Breakouts above resistance or breakdowns below support will determine intraday trends.