Bank Nifty Analysis, Outlook and Important levels for 31 August 2020

| August 30, 2020

Bank Nifty opened flat at 23635, register low 23599, and bounced back by more than 1000 points to register day’s high 24611 and closed 923 points up at 24523.

Friday, 23275-23010 was immediate support range and 23010 was immediate downside breakeven point. Bank Nifty was in the positive zone as long as trading above 23010 and had the possibility of further bounce towards 24724 incoming sessions if hold support at 23010.

Bank Nifty opened at 23635 and bounced further to register high 24611 but without entering in support range and closed at 24523. Now, let’s have a fresh look at the latest charts for further scenarios.

This analysis report is covering decline started from all-time high 32613 which I am analyzing independently in my last analysis report Bank Nifty Analysis, Outlook and Important levels on All Time Frame Charts

Elliott wave counts of Bank Nifty on Daily chart

Elliott wave counts of Bank Nifty on Daily chart

This is the Daily time bar chart of Bank Nifty covering decline after all-time high 32613 which I am analyzing independently.

It seems wave [1] completed at 30209, wave [2] may be completed at 31649 as big Irregular Correction, wave [3] may be completed at 21351, wave [4] may be completed at 25670 and wave [5] may be completed at 16116.

This impulse completed from 32613-16116 can be wave [A] or ([C] of Irregular Correction). Now, let’s analyze the bounce started from low 16116 separately on the lowest possible time frame to check its pattern.

Elliott wave counts of Bank Nifty on 05 Hourly chart

Elliott wave counts of Bank Nifty on 05 Hourly chart

This is 05 Hourly time bar chart of Bank Nifty covering bounce after 16116 which I am analyzing independently.

It seems a corrective wave (A or 1) may be completed at 21462, wave (B or 2) may be completed at 17105 as Irregular Correction and wave (C or 3) may be completed at 24611 or still in progress.

Within wave (c or 3), it seems wave (i),(ii),(iii),(iv) may be completed till 21034, and wave (v) may be in progress.

Wave (v) achieved minimum 38% projection after breaks above 23365 whereas 61% projection is placed at 24805 which may or may not be achieved.

Now, let’s analyze the bounce started from low 21034 separately on the lowest possible time frame to check its pattern.

Elliott wave counts of Bank Nifty on Hourly chart

Elliott wave counts of Bank Nifty on Hourly chart

This is an Hourly time bar chart of Bank Nifty covering bounce after 21034 which I am expecting start of inner wave (v) of wave (C or 3) on the previous chart.

It seems wave (a or 1) may be completed at 22435, wave (b or 2) may be completed at 21404 and wave (c or 3) may be in progress.

Within wave (c or 3), it seems wave [i] may be completed at 22416, wave [ii] may be completed at 21889 and wave [iii] may be completed at 24611 or still in progress.

23%-38% retracement of progress of wave [iii] is placed at 23968-23571 which is short term support range.  38% retracement of whole wave (c or 3) is placed at 23385 and same is the short term downside breakeven point.

Bank Nifty is in positive zone as long as trading above 23385 and can give one more bounce of 1200-1800 points if hold 23385.

But if Bank Nifty breaks and stays below 23385 for more than 60 minutes can result in a further decline towards 21889-21034 again.

Conclusion and Outlook:-

For short/medium term, 22839-21743 is major support and 21743 major downside breakeven point. Bank Nifty is in the positive zone as long as trading above 21743 and has the possibility to bounce towards 24805-27137 in comings days if holds 23571. Two consecutive closings below 21743 can result in a major downside reversal towards 17105-16116.

For the very short term, 23968-23571 is a short term support range and 23385 is short term downside breakeven point. Bank Nifty is in the positive zone as long as trading above 23385 and can give one more bounce of 1200-1800 points if hold 23385.

But if Bank Nifty breaks and stays below 23385 for more than 15 minutes can result in a further decline towards 21889-21034 again. We need to keep all these conditions in mind while deciding the next trade.

Trading Strategy:

Bank Nifty is bouncing continuously without entering in support/low-risk buying range and not giving chance to buy. Now support range and breakeven point is far away.

The safe Trading strategy would be buying on Dips with stoploss below 23385 and 23968-23385 is a low-risk buying range. Bank Nifty can bounce from present levels or without entering in support also but low-risk buying range is 23968-23385 and stoploss is below 23385 only.

Support Range 23968-23385 is about 600-1000 points away and Bank Nifty can decline towards support but it is risky to sell during this type of sharp bounce. I will update the exact option trade during market hours if see the possibility of decline during market hours.

Further, we will update about the formation of any important internal pattern or any change in trend/pattern/important levels or fresh support/resistance/breakeven point during market hours by WhatsApp Broadcast to all my “Bank Nifty Live Updates” subscribers.

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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