Bank Nifty Analysis, Outlook and Important levels for 23 December 2019

| December 22, 2019

Bank Nifty opened flat at 32266, declined to register low 32199 but bounced back again by more than 200 points till 32443 and finally closed 143 points up at 32384.

Friday, 32077-31944 was immediate support range and 31944 was immediate downside breakeven point. Bank Nifty was positive and expected to bounce towards 32748-33832 as long as trading above 31944.

Bank Nifty declined till 32199 and bounced back again tills 32443. Now, let’s have a fresh look at latest charts for further scenario.

This analysis report is covering very last bounce started from low 24240 which I am expecting as inner wave [4] or [5] of (iii) of bigger (3) in my last analysis report Fresh Elliott Wave Analysis of Bank Nifty on All Time Frame

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 covering bounce after 24240. There is no major change in wave counts on this chart. Earlier we had two possibilities but possibility of Irregular Correction is almost negated, possibility of ED is most probable now.

So, (abc) wave completed from 24240-31783 can be inner wave (1) of ED, and wave (2) of ED may be completed from 31783-26560 as Simple Zigzag or still in progress as Complex Correction. We need to concentrate on bounce after 26560 to check its pattern.

From low 26560, wave completed from 26560-30801 can be marked as wave (a or 1), decline from 30801-27568 can be marked as wave (b or 2) and wave (c or 3) may be in progress.

Within wave (c or 3), it seems inner wave (iii) completed at 32157, (iv) may be completed at 30996 and wave (v) may be in progress. 38%-61% projection for wave (v) is placed at 32748-33832 which is minimum target range for completion of wave (v).

Now, let’s analyze the bounce started from low 30996 on separate lowest possible time frame.

Elliott wave counts of Bank Nifty on 15 Minute chart

Elliott wave counts of Bank Nifty on 15 Minute chart

This is 15 minute time bar chart of Bank Nifty covering move from low 30996 which I marked as start of inner wave (v) of (c or 3).

It seems inner waves [1],[2],[3] of (v) may be completed till 32293 and wave [4] or [5] may be in progress (wave [4] still have possibility to be Irregular correction).

If wave [4] is already completed at 32018 then minimum 38%-61% projection for wave [5] is placed at 32513-32819.

23%-38% retracement of wave [3] is placed at 32077-31944 which is immediate support range and 31944 is immediate downside breakeven point. Bank Nifty is in positive zone and has possibility to bounce towards 32748-33832 as long as trading above 31944. 32077-31944 will be immediate support until 32513 is achieved.

We can think of any big fall after breaking and stay below 31944 only.

Now, let’s analyze the bounce started from low 32018 on separate lowest possible time frame.

Elliott wave counts of Bank Nifty on 05 Minute chart

Elliott wave counts of Bank Nifty on 05 Minute chart

This is 05 minute time bar chart of Bank Nifty covering move from low 32018 which I marked as start of inner wave [5] of (v).

It seems wave completed at 32291 may be wave [a or 1], wave [b or 2] may be completed at 32088 and wave [c or 3] may be completed at 32443 or still in progress.

23%-38% retracement of progress of wave [c or 3] is placed at 32359-32307 which is intraday support range with 32307 as intraday downside breakeven point. Bank Nifty if breaks and stay below 32307 for 15 minutes can result in further decline towards 32077-31944.

Conclusion and Outlook:-

For short term, Bank Nifty is in positive zone with 32077-31944 as immediate support range and 31944 is immediate downside breakeven point. It has possibility to bounce towards 32748-33832 as long as trading above 31944. 32077-31944 will be immediate support until 32513 is achieved.

For Intraday/very short term, 32359-32307 can acts as intraday support range with 32307 as intraday downside breakeven point. Bank Nifty is in positive zone for Intraday as long as trading above 32307 but if it breaks and stay below 32307 for 15 minutes can result in further decline towards short term support 32077-31944.

We can think of any big fall after breaking and stay below 31944 only.

We need to keep all these conditions in mind while deciding next trade.

Trading Strategy:

Short term trading strategy would be Buying on Dips with stoploss some points below 31944 expecting bounce towards 32748-33832 in coming days.  Any Dips towards 32077-31944 is a short term buying opportunity.

For Intraday,

  1. Trading strategy would be Buying Bank Nifty in 32359-32307 range using stoploss some points below 32307 expecting bounce towards 32513-32748.
  2. Bank Nifty if breaks and stay below 32307 for more than 15 minutes then later bounce towards 32307-32359 can be used to sell Ban Nifty with stoploss some points above 32359 expecting decline towards 32088-31944.

Any other intraday trade for small swings can be planned during live market hours and same will be updated through Live Updates.

DisclaimerThis analysis report is just for outlook, probabilities and expected markets behaviour based on my personal Elliott Wave Analysis. Any trade based on these reports is solely your decision. I will not be responsible for any trade, loss or profit.

                                                                

 

                                                                                                                                                 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Category: Bank Nifty

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