Bank Nifty can Bounce Above 25198 Again in Medium Term

| September 28, 2017 | 0 Comments

Bank Nifty opened higher at 24308 and bounced to register day’s high 24331 but declined back by more than 500 points to register day’s low 23766 and finally closed 386 points down at 24812.

Yesterday, decline below 24015 was expected in coming days and 24430 was the breakeven point. I suggested Selling Bank Nifty in 24298-24338 range with stoploss of 24383 expecting targets below 24015 which can extend further towards 23759.

Bank Nifty bounced till 24331 and our selling 24298-24338 range was trigged and gave profit of more than 400 points. 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 Hourly chart

Elliott wave counts of Bank Nifty on Hourly chart

This is Hourly time bar chart of Bank Nifty Covering move from all time high 25198 which I am expecting as start of corrective pattern. This is same chart which I posted in yesterday’s report because there is no change in wave counts on this chart.

It seems an impulse is already completed from 25198-23852 as marked on chart and this impulse can be wave (A) of correction, wave (B) may be completed at 25105 and wave (C) may be in progress from 25105.

Normal 100%-123% projection for wave (C) is placed at 23759-23441 which is the normal range for projection of wave (C). So, Bank Nifty has possibility to bounce above new high again after completion of wave (C) which is completing whole ABC Correction.

And within wave (C), it seems wave [1] may be completed at 24706, wave [2] may be completed at 24862, wave [3] may be completed at 24015, wave [4] may be completed at 24331 and wave [5] may be completed at 23766 or still in progress.

Minimum 38%-61% projection for wave [5] is placed at 23914-23657, 23914 is already achieved where as 61% is placed at 23657 which may or may not achieve.

Now, we need to analyze the progress of expected wave [5] started from 24331 on separate lowest possible time frame chart.

Elliott wave counts of Bank Nifty on 5 Minute chart

Elliott wave counts of Bank Nifty on 5 Minute chart

This is 5 minute time bar chart of Bank Nifty covering move from 24331 which is the start of wave [5] on previous chart.

It seems wave completed from 24331-24177 may be wave (i), wave completed from 24177-24209 may be wave (ii), wave completed from 24209-23886 may be wave (iii), wave completed from 23886-23966 may be wave (iv) and wave (v) may be in progress from 23966.

Minimum 38%-61% projection for wave (v) is placed at 23796-23690, 23796 is already achieved where as 61% is placed at 23690 which may or may not achieve.

Normal 38% retracement for the progress of wave [5] is placed at 23981. So, 23981 can be used as breakeven point for upside and same can be used as stoploss for existing shorts.

Conclusion and Outlook

Wave counts on charts are indicating that whole (ABC) correction started from high 25198 is about to complete as Simple Zigzag correction. Inner wave of this correction already achieved minimum requirements. 23759-23441 is the normal range for completion of wave (C) of (ABC) correction which is already nearby.

23981 is the short term breakeven point for upside and same can be used as stoploss for any existing shorts.

Trading Strategy:

According to conditions on chart, safe trading strategy would be: –

A big Correction is about to complete somewhere around 23759-23441 range and we can expect bounce for new high above 25198 again after completion of this correction. So, all shorts must be exited for time being and avoid fresh shorts until we get any confident bearish pattern.

As bounce above 25198 is expected in coming days, so 26 Oct 25000 Call can be bought at present levels without any stoploss for further updates. And any further short term/Intraday trades will be suggested after seeing the inner waves of reversal pattern with small stoploss.

CLICK HERE to get Elliott Wave Analysis Reports of Bank Nifty Daily by Email with Expected outlook, Targets, Stoploss and Trading Strategies.

Also Read,

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

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Category: Bank Nifty

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