Bank Nifty Can Bounce Further Towards 25780-26217 in Coming Sessions

| December 20, 2017 | 1 Comment

Bank Nifty opened higher at 25779 and declined back sharply just after opening and registers day’s low 25566 and finally closed 124 points down at 25591.

Yesterday, bounce above 25759 was expected and 25322 was breakeven point for downside. I suggested Bank Nifty if decline towards 25400-25322 then 25300 Call of 28 Dec 2017 can be bought with exact stoploss of 25279 expecting target 25759 and above. I also suggested that those who still want to buy with closer stoploss can use dip towards 25570-25520 to buy Bank Nifty using stoploss of 25512.

Bank Nifty opened at 25779 and declined back till 25566 and finally closed at 25591. Now, we need to analyze latest charts for next move.

This report is covering Bank Nifty move after 12 Oct 2017 from low 23611 and earlier wave counts are explained in my last previous analysis report Elliott Wave Outlook and Trading Strategy of Bank Nifty for 16 October 2017 Onward

Elliott wave counts of Bank Nifty on 5 Hourly chart

Elliott wave counts of Bank Nifty on 5 Hourly chart

This is 5 Hourly time bar chart of Bank Nifty covering move from low 23611. This is the same chart which I posted in my yesterday’s report because there is no major change in wave counts on this chart.

It seems wave completed from 23611-24872 may be wave (A), wave completed from 24872-23916 may be wave (B ) and wave completed from 23916-25953 may be wave (C ).

Now, we need to analyze the decline started from high 25953 on separate lowest possible time frame chart.

Elliott wave counts of Bank Nifty on 30 Minute chart

E                              Elliott wave counts of Bank Nifty on 30 Minute chart

This is 30 Minute time bar chart of Bank Nifty Covering move from high 25953.

It seems wave completed from 25953-24813 may be wave [A], wave completed from 24813-25556 may be wave [B] and wave completed wave [C] may be completed at 24617. Overall, it seems a correction may be completed as [ABC] pattern.

From low 24617, it seems wave 1,2 may be already completed and wave 3 may be completed at 25759 and wave 4 may be in progress from 25759.

Normally 23%-38% retracement for wave 4 is placed at 25489-25322 which is the range where Bank Nifty can find support for further bounce above 25759. 25322 can be referred as short term breakeven point below which we can think about reversal towards downwards.

Minimum 38%-61% projection for wave 5 is placed at 25948-26217 if wave 4 already completed at 25512. So, 25948-26217 is the minimum upside target range if Bank Nifty bounces straightway without breaking below 25512.

Conclusion and Outlook:

Overall outlook of Nifty is positive for targets above 25780, may be towards 25948-26217 as long as trading above 25322. But 25512 is the immediate pattern negation point below which we can see further decline towards 25489-25322.

And if Bank Nifty bounced without breaking below 25512 then minimum upside targets for the bounce are 25948-26217. We need to keep all these conditions in mind while preparing next trade.

Trading Strategy:

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

1. Those who bought Bank Nifty today in 25570-25520 range can hold the same with same exact stoploss of 25511 expecting minimum upside targets 25948-26217.

2. If Bank Nifty decline in 25370-25322 range the 25200 call of Dec Expiry can be bought using stoploss of 25297 expecting target above 25780.

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 Outlook and Trading Strategy of Bank Nifty for 07 December 2017 Onward
  2. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 November 2017 Onward
  3. Elliott Wave Targets of Bank Nifty for October 2017 Expiry
  4. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 16 October 2017 Onward
  5.  Bank Nifty can Bounce Above 25198 Again in Medium Term
  6.  Long Term And Short Term Elliott Wave Analysis Report of Bank Nifty for 14 August 2017 Onward
  7. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 27 July 2017 Onward
  8. Bank Nifty Can Bounce Sharply Towards 24437-24704 in Short Term
  9. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 July 2017 Onward
  10. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 July 2017 Onward
  11. Elliott Wave Analysis Report of Bank Nifty for 28 June 2017
  12. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 June 2017 Onward
  13. Bank Nifty can bounce further towards 23464-23587 in Coming Sessions

Contact me:

Email: ewavinod@gmail.com
Call: 9796033671
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Website: www.ewanalyst.com

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Category: Bank Nifty

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  1. sriram sharma says:

    thanks for sharing bn wave count

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