Elliott Wave Outlook and Trading Strategy of Bank Nifty for 16 October 2017 Onward

| October 15, 2017 | 0 Comments

Bank Nifty opened higher at 24411 and register low 24387 but bounced back again by more than 300 points to register day’s high 24779 and finally closed 327 points up at 24689.

Friday, bounce towards 24393 and above was expected and 24271 was breakeven point for upside. I suggested holding Bank Nifty 26 Oct 25000 Call bought near 23800 levels without any stoploss for further updates [26 Oct 25000 call bounced from 39-112 and finally closed at 90]. I also suggested Bank Nifty if breaks below 24271 then buy 24400 Put of next weekly expiry using stoploss of 24341 expecting targets 24074-23978.

Bank Nifty registers low 24387 and bounced back again to register high 24779. So, our fresh trade was not activated. Now, we need to analyze latest chart to find next move.

This report is covering Bank Nifty move after 02 August 2017 high 25198 and earlier wave counts are explained in my last previous analysis report Long Term and Short Term Elliott Wave Analysis Report of Bank Nifty for 14 August 2017 Onward

Elliott wave counts of Bank Nifty on 5 Hourly chart

Elliott wave counts of Bank Nifty on 5 Hourly chart

This is 5 Hourly time bar chart of Bank Nifty Covering move from all time high 25198 which I am expecting as start of corrective pattern.

It seems a Simple Zigzag correction is already completed from 25198-23611 followed by start of new upside impulse as marked on chart.

Now, we need to analyze that upside impulsive bounce started from low 23611 on separate lowest possible time frame chart.

Elliott wave counts of Bank Nifty on 30 Minute chart

Elliott wave counts of Bank Nifty on 30 Minute chart

This is 30 Minute time bar chart of Bank Nifty covering move from low 23611.

It seems an impulse completed from 23611-24460 may be wave (1) and wave completed from 24460-23978 may be wave (2) and wave (3) may be in progress from 23978.

Minimum 100%-161% projection for wave (3) is placed at 24827-25351 which is the possible range for Bank Nifty on upside for completion of wave (3).

And within wave (3), it seems wave [i] may be completed at 24134, wave [ii] may be completed at 24074 and wave [iii] may be completed at 24779 or still in progress.

Normal 23%-38% retracement for wave [iv] is placed at 24612-24509 which is the possible range from where Bank Nifty can bounce further towards 24779 which further can extend towards 24827-25351 in coming days if I am right at identifying the pattern.

38% retracement of wave (iii) of (3) placed at 24509 is the breakeven point and same can be used as stoploss for any longs.

Conclusion and Outlook :

Bank Nifty bounced by more than 700 points within last 2 days and register high 24779. But Bank Nifty still has possibility to bounce further above 24779 which can extend towards 24827-25351. And 24612-24509 is the possible range from where Bank Nifty can bounce again towards 24779 and above in coming days.

And 24509 can be referred as the fresh breakeven point and same can be used as stoploss for any longs.

Trading Strategy :

1. 25000 Oct Call taken around 24800 some days back (in 40-45 range) registered high of 112 today. This call already bounced by 200%. Book part/full profit on this call based on your position size and keeps 24487 as fresh stoploss of rest position.

2. Bank Nifty if get in 24550-24509 range then 18 Oct 24400 Call can be bought using stoploss of 24487 (some points below 24509) expecting targets 24779 which further can extend towards 24827-25351.

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Also Read,

  1.  Bank Nifty can Bounce Above 25198 Again in Medium Term
  2.  Long Term And Short Term Elliott Wave Analysis Report of Bank Nifty for 14 August 2017 Onward
  3. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 27 July 2017 Onward
  4. Bank Nifty Can Bounce Sharply Towards 24437-24704 in Short Term
  5. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 July 2017 Onward
  6. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 July 2017 Onward
  7. Elliott Wave Analysis Report of Bank Nifty for 28 June 2017
  8. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 June 2017 Onward
  9. Bank Nifty can bounce further towards 23464-23587 in Coming Sessions

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Category: Bank Nifty

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