In June 2015, we mentioned that Nifty-NSE from India was in a warning area for the bulls and a larger correction was expected to take place. Over the next 12 months, Nifty lost 25% dropping from a high of 9119.20 on 3.4.2015 to a low of 6825 on 2.29.2016. However, as we keep mentioning World Indices trend remains up and dips are nothing more than buying opportunity in the right areas, so this dip in this Indian Index was another buying opportunity in the blue box between 7459 - 6721.Nifty-NSE buying area down from 3.4.2015 peak
Index found buyers in the blue box shown on the chart above and rallied. Index has already made a new high above 9119.20 (3.4.2015) and has opened the next bullish extension. Index is currently showing an incomplete Elliott wave sequence up from 2.29.2016 low which calls for dips to find buyers in the sequence of 3, 7 or 11 swings for extension higher.Nifty-NSE 10053 - 100562 is next warning area for bulls
Index is showing an incomplete Elliott wave sequence which means dips should remain supported for more upside. As dips hold above 5.24.2017 low and more importantly above 4.19.2017 low, expect the Index to find buyers in the dips in 3, 7 or 11 swings for extension higher towards 10053 - 10562 area. This area is close to the upper channel line as well and could contain the rally in the Index or at least slow it down. This means bulls should stay in control in rest of the Indices also like $SPX $INDU $FTSE $DAX $NASDAQ and $IBEX etc until Nifty doesn't reach the above mentioned area. From 10049 - 10557 area, we can see a larger 3 waves pull back in the Nifty to correct the cycle from 2.29.2016 low or at least from 12.26.2016 low.