Bank Nifty Can Bounce Sharply Towards 26140-26623 Soon

| February 16, 2018 | 0 Comments

Bank Nifty opened higher at 25360, registers low 25297 and bounced back by more than 300 points to register high 25615 but didn’t sustain at that level and declined back again to register low 25295 and finally closed 83 points up at 25424.

Yesterday, 25359 was immediate breakeven point on upside above which further bounce towards 25595-25810 was expected. I had also mentioned that Bank Nifty if breaks above the upper line of expected Triple Zigzag Correction marked on 15 minute chart then it can bounce sharply and straightway above 26140. The upper line was around 25700-25710.

Buying was suggested above 25359 using stoploss of 100 points expecting 25595-25810 range as minimum upside target. Minimum target will extend to 26140 if Bank Nifty breaks above 25710 and stoploss will change to 25550.

Bank Nifty opened at 25360 (above Breakeven point 25359), register low 25297 and bounced back to register high 25615 (gave profit more than 250 points) and finally closed at 25424. Let’s have a fresh look at latest charts for further scenario.

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].

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 30 Minute chart

                           Elliott wave counts of Bank Nifty on 30 Minute chart

This is 30 Minute time bar chart of Bank Nifty covering decline from 27652.

Normally the decline started from high 27652 seems impulsive with wave 1 completed at 27116, wave 2 may be completed at 27613, wave 3 may be completed at 25917, wave 4 may be completed at 26211 and wave 5 may be completed at 25023.

38%-61% retracement of this impulse [from 27652-25023] is placed at 26012-26623 if it is wave (A) completed. 26012 is already achieved. These retracements are not applicable if this impulse is wave (C).

Other Possibility:

But the further bounce from 25023 to 26140 is slow and retraced only 38%. On the other hand, wave 5 of downward impulse started from 26211 is extended but it didn’t retrace sharply. These conditions are not indicating any sign of bigger reversal whereas possibility for one more decline below 25023 is still there.

So, there is also a possibility that it is wave 3 completed at 25023, and wave 4 completed at 26140 and wave 5 is still pending. Minimum 38%-61% projection for wave 5 is placed at 25135-24515 in this case.

So, let’s need to analyze very last bounce started from low 25023 on separate lowest possible time frame chart to get more clarity..

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 25023.

It seems wave completed from 25023-26140 may be wave (A or 1), wave completed from 26140-25212 may be wave (B or 2) [Triple Zigzag Correction] and wave (C or 3) may be in progress from 25212.

Personality of Triple Zigzag Correction: Breakout from Triple Zigzag Correction always happens through the line joining wave (X)1-(X)2 and price never enter the pattern again after breakout. So, Bank Nifty if breaks above the upper line (line joining wave X1-X2) then it can bounce sharply above 26140 (start of Triple Zigzag) without entering below this line again. Upper line is around 25550-25560 right now.

100%-123% projection for wave (C or 3) is placed at 26329-26592 which is the expected range on upside for completion of wave (C or 3) if wave completed at 25212 is really wave (B or 2).

Within wave (C or 3), it seems wave completed at 25571 may be wave (a or 1), wave completed at 25295 may be wave (b or 2) as Irregular Correction and wave (c or 3) may be in progress from 25295.

25295 [end of (b or 2)] can be referred as breakeven point below which further decline towards 25023 and below is possible. And same 25295 can be used as stoploss for any longs.

Conclusion and Outlook:

There are opposite outlook for Medium Term and Short term,

For whole pattern from high 27652, personality of bounce from low 25023 is not indicating any bigger reversal and possibility for one more low below 25023 is still there in coming days, either from present levels or from 26140-26623 range.

But for short term, there is formation of Triple Zigzag type of pattern. If it is really a Triple Zigzag Correction then Bank Nifty can bounce very sharply above 26140 after breakout from this pattern. Breakout will from joining wave (X)1-(X)2 which is around 25550-25560 right now. So, Bank Nifty if breaks above 25560 then it can bounce sharply and straightway above 26140 within no time.

So at present, we will follow short term counts indicating Triple Zigzag correction giving outlook that, Bank Nifty breaking above 25560 can bounce straightway towards 26140-26623 within no time. Further possibility we will conclude after seeing the pattern after breaking above 26140.

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

Trading Strategy:

Bank Nifty if break above 25560 then buy Bank Nifty 25500 call of 22 Feb expiry with stoploss of 130 points expecting minimum target 26140 which further can extend towards 26329-26623 in coming days.

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 of Bank Nifty before 25 January 2018 Expiry
  2. Bank Nifty Can Bounce Towards 27055-27445 Before January 2018 Expiry
  3. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 18 January 2018 Onward
  4. Elliott Wave Analysis of Bank Nifty for All Time Frames as on 08 January 2018
  5. Bank Nifty can bounce above 25780 sharply in coming days
  6. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 December 2017 Onward
  7. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 November 2017 Onward
  8. Elliott Wave Targets of Bank Nifty for October 2017 Expiry
  9. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 16 October 2017 Onward
  10.  Bank Nifty can Bounce Above 25198 Again in Medium Term
  11.  Long Term And Short Term Elliott Wave Analysis Report of Bank Nifty for 14 August 2017 Onward
  12. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 27 July 2017 Onward
  13. Bank Nifty Can Bounce Sharply Towards 24437-24704 in Short Term
  14. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 July 2017 Onward
  15. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 July 2017 Onward
  16. Elliott Wave Analysis Report of Bank Nifty for 28 June 2017
  17. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 June 2017 Onward
  18. Bank Nifty can bounce further towards 23464-23587 in Coming Session

Contact me:

Emailewavinod@gmail.com

Call: 9796033671

WhatsApp: 9796033671

Website: www.ewanalyst.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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