Nifty - Elliot Wave Update

Nifty is undergoing Wave 3 in the larger timeframes which started in October 2008. Wave 3 is the largest and most trending generally and should take the Nifty to levels of 15000 by 2014-5.

Fibonacci in action - Crude and Nifty

The above charts show the significance of the 61.8% Fibonacci retracement in Crude and Nifty Futures.

First Crude hit a high of around 148 in July 2008 and a low of 32 in December 2008. The 61.8% Fibonacci retracement of this fall is around 105 which proved to be a resistance for Crude in the last few weeks. In the last few days it has broken past this resistance so expect prices to rally further from here.

Nifty hit a high of 6350 in Nov 2010 and a low of 5175 in Feb 2011. The 61.8% retracement of this move is 5900 which is where the Nifty is facing resistance since the last few days.