Elliot Wave forecasts Sensex at

100,000 by 2024
According to Mark Galasiewski, editor of Elliott Wave International’s Asian
Financial Forecast – Sensex will hit 100000 by 2024.   His report identifies India
as one of the “baby bulls” along with Taiwan, New Zealand and Korea.

This report was published in April 2009  when the Indian stock index (Sensex)
was below 10000. So it was a bold prediction to say that the sensex will rise by
10 times in 15 years.   So what is this “Elliot wave” principle and how can we
benefit from it?  lets dig in

What is Elliot Wave Principle?

The Elliott Wave Principle is a detailed description of how financial markets
behave. The description reveals that mass psychology swings from pessimism to
optimism and back in a natural sequence, creating specific Elliott wave patterns
in price movements. Ralph Nelson Elliott published his theory of market behavior
in the book The Wave Principle (1938).
Elliott’s model identifies waves 1,3, and 5 as “impluse” waves waves. They are
easy to recognize and move with tailwinds. Waves 2, and 5 “corrective” waves,
and move with headwinds. Additionally impulse waves are subdivides into five
waves and corrective waves subdivide into 3 waves. This report in April 2009
identified sensex to be in the third wave, eventually rallying to 100000 by 2024.