Bank Nifty Can Bounce by 1300-2000 Points After Achieving 24048-23842

| March 20, 2018 | 0 Comments

Bank Nifty opened lower at 24133, registered low 24110 and bounced back again to registered high 24355 but didn’t sustain at that level and declined back again by more than 250 points to register low 24082 and finally closed 76 points down at 24168.

Yesterday, I had mentioned that for short term Bank Nifty still in negative zone and has possibility to decline further towards 24186-24048 either from present level or 24363-24473 range in coming days. 24473 was the breakeven point on upside above which we can expect further bounce.

Buying in Bank Nifty Puts were suggested in 24430-24473 range with exact stoploss of 24521 expecting target 24186-24048 in coming days. Bank Nifty achieved targets but declined without hitting resistance zone. Now, we need to analyze fresh charts for further updates.

This analysis report is covering bounce 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]. This is the same chart with explanation which I had explained in my last report because there is no change in wave counts on this chart.

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] after 23611, the bounce is combination of repeated (ABC) waves. So, either there is Ending Diagonal Triangle pattern in progress or it is Irregular Correction at top. Exact pattern is not yet clear, so we need to concentrate on the decline started from 27652 until we get clarity.

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 decline from 27652.

It seems that the decline started from high 27652 is impulsive with wave 1 completed from 27652-27116, wave 2 may be completed from 27116-27613, wave 3 may be completed from 27613-25023, wave 4 may be completed from 25023-25723 as irregular correction and wave 5 may be in progress from 25723.

Wave 5 achieved its minimum 38%-61% projection placed at 24718-24098 whereas 100% placed at 23094 which may or may not be achieved. Bank Nifty achieved 24048 till now.

Within wave 5, it seems wave (i),(ii),(iii) may be completed till 24048, wave (iv) may be completed at 24939 as Double Zigzag Correction and wave (v) may be in progress from 25009.

Minimum 38%-61% projection for wave (v) of 5 is placed at 24299-23903. But end of wave (iii) of 5 is at 24048, so 24048-23903 is the minimum expected target range for completion of wave (v) whereas 100% placed at 23264.

Overall, this big impulse started from 27652 is within its last inner wave (v) of 5 and we can expect minimum 38%-61% bounce after completion of this correction which will be about 1300-2000 points from low.

Now, we need to analyze the wave (v) started from 25009 on separate low frame chart to check its inner waves.

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 25009 which I am expecting inner wave (v) of 5 on the previous chart.

It seems wave completed from 25009-24487 may be wave (A or 1), wave completed from 24487-24939 may be wave (B or 2) and wave (C or 3) may be in progress from 24939.

Within wave (C or 3), it seems [1] may be completed at 24762, wave [2] may be completed at 24906, wave [3] may be completed at 24110 and wave [4] may be completed at 24355 or still in progress.

Minimum 38%-61% projection for wave [5] is placed at 24038-23842 which is the expected target range for completion of wave [5], if wave [4] already completed at 24355.

Wave [5] is still short of minimum 38% projection, so 38% retracement of progress of wave (C or 3) placed at 24426 is still the immediate resistance on upside and same can be used as stoploss for shorts.

Conclusion and Outlook:

There is no change in outlook, For Short Term, Bank Nifty still in negative zone and has possibility to decline further towards 24048-23903 either from present level or from 24355-24426 in coming days. 24355-24426 is the immediate resistance and 24426 is immediate breakeven point on upside above which we can expect further bounce and same can be used as stoploss for any shorts.

For medium term, a big impulse started from 27652 is within its last inner wave (v) of 5 and we can expect minimum 38%-61% bounce after completion of this correction which will be about 1300-2000 points from low. So, we can expect minimum 1300-2000 points bounce after achieving 24048 but exact bottom cannot be calculated yet.

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

Trading Strategy:

According to the conditions on the charts, trading strategy would be:

For Intraday/very short term, Bank Nifty if get in 24380-24426 range then 24500 Put of 22 March expiry can be bought using exact stoploss 24479 (some points above 24426) expecting target 24048-23903 in coming days.

For medium term, there is possibility of minimum 1300-2000 points bounce after achieving 24048 but we don’t have exact bottom. So, Bank Nifty if get in 24048-23903 range then 25000 Call of April Expiry can be bought without stoploss and wait for next update. But buy in light quantity because we are buying without 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. “Elliott Wave Analysis of Bank Nifty for All Time Frames as on 08 January 2018”
  2. Bank Nifty can bounce above 25780 sharply in coming days
  3. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 December 2017 Onward
  4. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 November 2017 Onward
  5. Elliott Wave Targets of Bank Nifty for October 2017 Expiry
  6. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 16 October 2017 Onward
  7.  Bank Nifty can Bounce Above 25198 Again in Medium Term
  8.  Long Term And Short Term Elliott Wave Analysis Report of Bank Nifty for 14 August 2017 Onward
  9. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 27 July 2017 Onward
  10. Bank Nifty Can Bounce Sharply Towards 24437-24704 in Short Term
  11. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 July 2017 Onward
  12. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 July 2017 Onward
  13. Elliott Wave Analysis Report of Bank Nifty for 28 June 2017
  14. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 June 2017 Onward
  15. Bank Nifty can bounce further towards 23464-23587 in Coming Session

Contact me:

Emailewavinod@gmail.com

Call: 9796033671

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Website: www.ewanalyst.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Category: Bank Nifty

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