Short Term Elliott Wave structure in Nifty suggests cycle from 7.20.2023 high is in progress as a double three structure. Down from 7.20.2023 high, wave (a) ended at 19615.95 and rally in wave (b) ended at 19876.55. The Index then extended lower in wave (c) towards 19296.45 and it completed wave ((w)) in higher degree. The Index then corrected in wave ((x)) as a zigzag. Up from wave ((w)), wave (a) ended at 19634.4 and wave (b) ended at 19467.5. Wave (c) higher ended at 19645.5 which completed wave ((x)) in higher degree.
The Index then extended lower in wave ((y)) with internal subdivision as another double three in lesser degree. Down from wave ((x)), wave (w) ended at 19257.9. Expect wave (x) rally to fail below wave ((x)) high at 19645.5 for further downside in wave (y) of ((y)) to complete wave 4. Afterwards, the Index should resume higher again. Potential target lower is 100% – 161.8% Fibonacci extension of wave ((w)) which comes at 18523.69 – 18951.54. Near term, as far as pivot at 19994.66 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside.
