Bank Nifty Can Bounce Towards 27055-27445 Before January 2018 Expiry

| January 19, 2018 | 4 Comments

Bank Nifty opened huge gap up at 26762, further bounced to register new all time high 26887 but didn’t sustain at higher and declined back again by more than 200 points to register low 26423 and finally closed 248 points up at 26537.

Yesterday, bounce above 26335 was expected and 26212 was immediate breakeven point for downside. I suggested that if someone still holding Bank Nifty 25800 call of 18 Jan Expiry bought in 25931-25903 range then book part profit and hold rest with stoploss below 26212.

Bank Nifty opened huge gap up at 26762, further bounced till 26887 and Bank Nifty 25800 Call of 18 Jan expiry bounced from 133-977 (within 2 days). Now, we need to analyze latest charts for next move.

This analysis report is covering more from 17606 which I am expecting as start of inner wave [3] in my last all time frames analysis report “Elliott Wave Analysis of Bank Nifty for All Time Frames as on 08 January 2018”

Elliott wave counts of Bank Nifty on Daily chart

Elliott wave counts of Bank Nifty on Daily chart

This is Daily time bar chart of Bank Nifty which I am expecting as start of wave [3].

It seems wave [i],[ii],[iii],[iv] may be completed till 23611 and wave [v] may be in progress from 23611.

Wave [v] achieved its 38% projection placed at 26511 whereas 61% projection placed at 28302 which may or may not achieve.

Within wave [v], it seems wave (1) may be completed at 25953, wave (2) may be completed at 24617 and wave (3) may be in progress from 24617.

100%-161% projection for wave (3) is placed at 26959-28406 which is the minimum upside range for completion of wave (3) of wave [5].

Now, we need to analyze the progress of wave (3) started from low 24617 on separate lowest possible time frame chart to check its pattern.

Elliott wave counts of Bank Nifty on Hourly chart

Elliott wave counts of Bank Nifty on Hourly chart

This is Hourly time bar chart of Bank Nifty covering move from 24617 which is the start of wave (3) of wave [v] on previous chart.

It seems wave completed from 24617-25780 may be wave (i), wave completed from 25780-25232 may be wave (ii) and wave (iii) may be in progress from 25232.

Within wave (iii), it seems wave 1,2 may be completed till 25527 and wave 3 may be completed at 26887 or still in progress.

23%-38% retracement of progress of wave 3 is placed at 26567-26367 and Bank Nifty declined till 26423. So, 26423-26367 is the range where Bank Nifty can find support for further bounce above 26887 for new high. And 26367 is the breakeven point below which we can think of any reversal.

If wave 3 already completed at 26887 and wave 4 already completed at 26423 then minimum 38%-61% projection for wave 5 is placed at 27055-27445. So, 27055-27445 is the minimum target range in this case.

Conclusion and Outlook:

Bank Nifty bounced by more than 1400 points within six sessions and again registers new all time high 26887 after breaking earlier high 26335 and still has possibility to bounce further above 26887, may be towards 27055-27445.

26423-26367 is good support on downside from where Bank Nifty can start next bounce and 26367 is the breakeven point which can be used as stoploss for longs.

Trading Strategy:

  1. Bank Nifty if get in 26423-26367 range than 26300 call of 25 Jan Expiry can be bought using stoploss of 26299 expecting 26887 as minimum target which can extend even high above 27000.
  1. Otherwise Bank Nifty also has possibility to bounce towards 27055-27445 straightway from present levels. So, one can buy 26800 call of Jan 25 Expiry at tomorrow opening without stoploss to hold till 25 Jan 2018. 26800 Call trading at 65 and can bounce till 200-600 if wave counts I marked are correct.

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Also Read,

  1. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 18 January 2018 Onward
  2. “Elliott Wave Analysis of Bank Nifty for All Time Frames as on 08 January 2018”
  3. Bank Nifty can bounce above 25780 sharply in coming days
  4. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 December 2017 Onward
  5. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 November 2017 Onward
  6. Elliott Wave Targets of Bank Nifty for October 2017 Expiry
  7. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 16 October 2017 Onward
  8.  Bank Nifty can Bounce Above 25198 Again in Medium Term
  9.  Long Term And Short Term Elliott Wave Analysis Report of Bank Nifty for 14 August 2017 Onward
  10. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 27 July 2017 Onward
  11. Bank Nifty Can Bounce Sharply Towards 24437-24704 in Short Term
  12. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 July 2017 Onward
  13. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 July 2017 Onward
  14. Elliott Wave Analysis Report of Bank Nifty for 28 June 2017
  15. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 June 2017 Onward
  16. Bank Nifty can bounce further towards 23464-23587 in Coming Session

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Category: Bank Nifty

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