Nifty Junior (Nifty Next 50) Elliott Wave Analysis. As on 10 Oct 2019. CMP 26,570
Bottom line : Both counts are bullish. But short term, either one more low to come or the larger decline is complete.
Both counts show this is a wave 4 correction (almost complete or complete), and a larger wave 5 to the upside is yet to come, which is expected to make new highs above 31,990.
Count 1 : Nifty Junior is also in an ending diagonal, but the slope of the ending diagonal is much less than than that of Midcaps 100. In fact, it virtually looks like a triangle, but wave 3 made a lower low than wave 1, so it is an ending diagonal.
What this means .. or the take-away is that downward momentum in Nifty Junior is slowing even more than the midcaps.
A new low below 24,873 is on the cards. This would complete wave 5 of the ending diagonal and set the stage for a strong rally.
Count 2 : This shows the larger decline is possibly already complete. But what gives us pause is that the recent rally is clearly not in 5 waves, so unless price begins shooting up almost immediately, this count can be considered the alternate count.