NIFTY has been very supportive of the Elliott wave analysis.
#Nifty 50 is the main index for the Indian markets. With the weightage of the most valuable stocks like Reliance, HDFC Bank, TSC, INFY and many more, the mass psychology of the index becomes much smoother than other stocks and indices.
Let’s see how the Elliott wave reacted to the Nifty as you can have a look at the Elliott wave counts.
*Note: I am associated with these counts from 25 Sept 2020, because that was the time I found that Nifty is making 1,2,I,ii as an extension. After that, Nifty folded herself very nicely with the Fibonacci relation and RSI divergence.
Also, 20th of April when the bottom of the complex 4th correction was made, the news of BLACK FUNGUS was at its peak.
Near the 19th of October 2021, it was all over the news and Twitter that Nifty rallied near Diwali till Christmas from the last 10 years.
Now, Let’s see a few Rules and Guidelines on which Nifty has been very supportive.
RULES AND GUIDELINES OF ELLIOTT WAVE PRINCIPLE ON NIFTY 50
Wave 2 - Zigzag
wave ii - Zigzag
Wave 4 - Complex correction
Wave iv - Complex correction
Every retracement of Impulse penetrated wave 4.
Wave 3 = 2.618 of Wave 1
Wave i = wave v (33%)
Wave iii the middle impulse is the longest and sharpest
RSI Divergence on almost every end of an impulse in an hour TF.