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