NSE NIFTY & BANKNIFTY – Elliott Wave Report

IS NSE NIFTY Heading Towards 25400?

Timeframe: 4h

After reaching a low of 21281, NSE NIFTY began an impulsive wave formation. Wave (2) was characterized by a sharp decline, while wave (4) formed an irregular flat pattern at 23,893.7. The sub-waves of wave (5) are now in progress. Currently, the Average True Range (ATR) is 130, and the Average Directional Index (ADX) stands at 20, indicating a potential small correction before the next impulse wave (5).

Traders can identify multiple Fibonacci clusters on the chart for potential targets. Wave 4 is expected to retrace no more than 38.2%, likely around the 24,650 – 24,580 range. It’s important to allow some room for invalidation; even if the price breaches this scenario, there’s still a possibility of one more upward move, with NIFTY potentially reaching 25,400. Target levels could be 25,070 – 25,240 – 25,400+. The outlook turns bearish if wave 2 breaks down with heavy volume.

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NSE BANKNIFTY – Bullish Scenario