For that we will see 1 hour chart of Nifty
In this chart we can clearly see that one impulse from 11090.65 till 12157.75 is completed. It was confusing development within wave 3 where is gave some indication that 4 has been made but in actual that was 4 of 3. But last pattern which looks like Ed in 5 makes it almost sure that impulse has been completed. After that reversal has been seen but the speed of that is very slow. Normally reversal after ED is very fast. So we need to check what pattern is made after the top of 12157. We will see that development in 5 minutes chart of Nifty.
We can see that from the high of 12157 pattern looks like Leading Diagonal (LD). The sub wave of LD is not very clear. Most of the situation is favoring LD and within LD wave 1, 2, 3 and 4 looks completed and 5 may be in progress. There are very few chances that it is some sort of correction. Main reason for that if it is a correction it has to be 4 and it is near to completion which is not properly giving any good corresponding Fibonacci ratio. If it is LD and wave 1, correction of wave 2 should complete above the line joining 2-4. It is safe to
assume that wave 2 will be completed much above 12000 or may be in the range of 12050 12100. That should show us a corrective pattern also. Currently if you get a chance, one can buy near the trend line, below 11888, keeping SL below 11800 for the target of 11900-12000 with confirmation of the pattern..
Disclaimer:- Idea and views given here are only for educational purpose. It is just to show how Elliott wave analysis can be done in practical example. Do not take any trade only on the basis of idea given here. Consult your financial advisor first before taking any trade. We do not take any responsibility for any trade taken by whatsoever means or purpose.