The NIFTY Index analysis describes a five-wave impulsive advance followed by a three-wave corrective decline, forming an Elliott Wave bullish sequence. The pullback from the peak is presented as a clear three-wave move lower that has reached an Equal Legs area, framed as a prospective support zone derived from Fibonacci extension measurements.<\/p>\n
On the one-hour chart dated 07.23.2026, NIFTY is characterised as being in an intraday three-wave correction from recent highs, with the downswing described as incomplete and implying scope for another leg lower. The stated Equal Legs buying zone is 23641.9\u201323192.3, and the framework anticipates support developing there, with a possible subsequent move back towards new highs.<\/p>\n
As the Nifty Index enters our identified support zone between 23,641.9 and 23,192.3, derivative traders should prepare for a bullish reversal in the coming weeks. This target area represents a healthy corrective pullback after the index showed strong upward momentum earlier this season. We recommend monitoring this key demand zone closely, as it offers a highly favorable risk-reward entry point for long positions.<\/p>\n
Our bullish view is supported by India’s strong macroeconomic foundation, with the country’s GDP growth recently projected to comfortably exceed 6.8%. Furthermore, Nifty 50 companies have reported a solid 12% average year-over-year earnings growth, reinforcing market resilience. Historical data shows that similar pullbacks during strong economic cycles have consistently attracted institutional buyers.<\/p>\n
To trade this setup, we suggest utilizing bull call spreads or writing put options with strikes just below the 23,190 support floor. This strategy allows traders to limit downside risk while positioning to capture the next impulsive wave upward. We advise keeping stop-losses tight just below the equal legs zone to protect capital in case of unexpected volatility.<\/p>\n\n\n\n