In the last analysis my view was that a breakout trade should be initiated and Nifty went from 8652 to test the important resistance zone of 9000 as expected.
As of now it seems that Nifty will retrace till the red zone of 8430- 8300 to complete the Wave 2 (Red) within Wave 3 (Double bracketed Blue).
It is also possible that the retracement is shorter in that case positions can be taken above the breakout if 9000 levels.
I expect that the index will make new all time highs and the strategy as of now is to buy on dips.
Currently is seems like the Double Bracketed Wave 3 will take Nifty to 9400 to even 10000+ levels, however more exact targets can be predicted once the Wave 2 (Red) pullback is complete.
I will update the targets as the picture becomes clearer.
Nifty New Highs to follow Elliott Wave Analysis 28th January 2017 onwards
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