The Nifty 50 began the new year on a quite high note.High hopes on the onset of the new year took the index to a clear green zone from where it is expected to soar further.Here is the analysis of the moves so far.
You can see an image of the Elliott wave counts for the index which clearly depict a green signal on several time frames. Wave counts indicate that the next targets for the Nifty are all above the 6000 mark.
A Gann reversal has taken place for a bullish move just a few days back, when the index started a fresh bullish move on the 26th of December 2012. The reversal was confirmed on the following day which is when was the ideal time to open a long position on the index. Further reversal dates do not fall before the 8th of Jan and hence we can safely assume that the Nifty will retain its bullish bias at least for a week.
As far as Camarilla Levels are concerned, we can clearly see from the above chart that December's sideway movement has brought the levels for January into a very narrow window. As of now, the index has closed just above the H3 resistance level which is a good indication of it making a move towards the higher H4 and H5 levels which, for January are 5983 and 6049 respectively.
Wolfe Wave patterns have also shown a sort of a bounce off the 2-4 support line indicated by the solid green line on the chart.
In all, the index is giving clear signals for a good bullish move at the very onset of the new year.
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