The Nifty 50 followed the expected trend even after the US CPI Inflation Data appeared favourable. The market is still experiencing downward pressure (final phase), and a bottom is anticipated soon, which will aid in a subsequent upward movement.
1H Time Frame of Nifty 50
We were expecting wave 2 when the market initially moved higher contrary to the previous analysis, so I examined the invalidation point. In Falcon Waves, invalidation points are straightforward; they are typically at the beginning of previous swings or where the wave structure begins. Some Elliott Wave rules are also applied, such as the 4th wave cannot be longer than wave 2 in a zig-zag correction, or the 4th wave cannot enter the area of wave 1, among others.
Thus, as the market began, I aimed to be cautious about where the wave would reverse, and it did so within the zone before continuing to decline.
For 17th March, I am still looking at doward movement. This downward pressure should go below previous low of 21964.
Gap Ups and Gap Downs frequently occur in internal wave 3. I wouldn't be surprised if a significant gap down, which has been postponed for quite some time, happens on Monday 17th March. If we start Monday with a gap down, this trend could persist until reaching 21,964 or lower, which is still more than 400 points from our current position.
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