Nifty Crashed! Elliott wave with Gann Key Levels, Do Not BUY Unless See this!

Nifty has been moving with high volatility. After breaking below the 23000 level on the daily timeframe prices have declined by almost 800 points in just 4 trading sessions.

It has now been 6 consecutive days where Nifty has not closed above the previous day's high. The overall undertone therefore remains on the downside unless we see a close above the prior day's high. Prices have also broken below the Gann level of 22877 and is now approaching the next Gann level of 22276 level which is a bearish sign.

Nifty Daily chart with Gann square of 9 levels

Gann square of 9

• The Gann Square of 9 is a simple yet powerful tool for identifying key support and resistance levels, based on the principle that price moves in mathematical harmony. Certain levels act as magnets until they are decisively broken.
• This helps a trader in identifying probable price targets and even market turning points.
• Here, as prices broke below the 23486 (Magnet level) prices witnessed a sharp move on the downside and also decisively broke below the next Gann of 22877 and is now heading lower with each passing session.

Nifty Hourly chart with Neo wave and 42 EMA

Combining the Gann square of 9 with Neo wave perspective

On the one-hour timeframe, we can see that prices are moving down in a channelized format and are also finding a hurdle at the 42-period moving average. The 42-period moving average is derived using the time-cycle framework.

• From a wave perspective, post completing Primary Wave (D) back in August 2026. The down move has been unfolding in the form of Primary wave (E).
• In which the internal structure of Wave (E) appears to be forming a double corrective pattern, with the second corrective phase unfolding in the form of Zig zag pattern.

Conclusion:

• The overall trend for Nifty remains tilted towards the bears, with the current structure indicating continued downside pressure. Traders should avoid catching falling knife and use pullbacks for a move towards 23276 levels. Unless we see a move above 22620
• As long as these levels remain protected, the broader structure is likely to remain under pressure. 

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