NIFTY opened with a gap-up of roughly 30 points, but the strength failed quickly and price declined nearly 100 points. After the initial drop, the market consolidated and retraced close to the 50% Fibonacci level.
From there, price gradually formed a rising channel, showing consistent higher lows. Around 1:50 PM, the index dropped nearly 50 points, but the very next candle reversed sharply, absorbing the decline. This marked a shift in intraday control.
Following that absorption, price broke the day’s high and continued upward into the close, ending with strong momentum.
Trading Perspective
The structure eventually turned bullish and the upward Elliott wave structure played out cleanly, leading to a strong breakout and continuation.
The earlier downward Elliott wave count was invalidated at point 4. Although it initially moved nearly 50% in the anticipated direction, the structure failed to confirm continuation.
Technically, both Fibonacci retracements and Elliott counts were marking reaction points accurately — the chart reading was not entirely wrong. The issue was execution alignment.
Mistakes Made
Today was challenging from a stop-loss perspective due to high volatility and sharp candles. I was caught in a few trades with minimal losses.
However, one major mistake stood out:
- I entered a trade without a stop-loss.
- Around 1:00 PM, there were signs of reversal forming.
- The 1:45 PM candle moved 49 points, closing in an indecisive zone.
- I interpreted the move as potential downside continuation.
- What I failed to recognise was that the downtrend was being absorbed and resisted.
My bias leaned toward expecting further decline, even when structure was shifting.
The upward Elliott structure was clean and tradable. I identified it — but did not participate.