Nifty’s Correction: Is a Bullish Reversal on the Horizon?

We have already analyzed the 4th wave of the correction on NSE NIFTY. At that moment, our estimation for the correction was 23,893. According to the outlook, the price has completed wave ((3)) and has begun forming wave ((4)), which has declined by over 11%.

Visit here: NSE NIFTY – Elliott Wave Outlook

In my previous article, I had noted that Wave B completed at 25,212, marking the start of Wave C’s decline, with 24,500 emerging as strong resistance. I mentioned that holding above 24,500 (wave iv) was crucial for a bullish reversal, with a breakout potentially shifting momentum toward a full 100% retracement to 25,212. The price failed to confirm the bullish momentum and ended up extending the correction.

Visit here: NSE NIFTY – Elliott Wave Perspective

Timeframe: Daily
An 11% decline can be considered an A-B-C correction. From the starting point, the price has already retraced 50% of the entire movement. The price has broken below the 200 EMA, and based on previous patterns, it typically reverses after a 4-5% decline.

The correction has reached wave (2), indicating the strength of the correction. Wave B completed at 25,212, and Wave C is now preparing for the final Wave V. Wave C has already achieved a 100% retracement, with the 161.8% level at 22,631. There is also a cluster level of 22,350, which represents 78.6% of the overall move. But, Before these levels, the price has strong support at 22,189 which is 61.8% of the overall move. After accomplishing wave C, we can see an upward move up to 23.6% of the preceding move. It’s possible to mark the entire correction as Wave (A), with Wave (B) potentially following afterward.

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