Bank Nifty Levels and Trading Strategy for 13 April 2020

| April 12, 2020

Bank Nifty opened gap up at 19553, declined to register day’s low 19166 but bounced back again by more than 700 points to register day’s high 19988 and finally closed 967 points up at 19913.

Friday, Bank Nifty was in negative zone and 19108-19698 was immediate resistance range. Bank Nifty was expected to decline towards 17953-17143 as long as trading below 19698.

Trading strategy was to Sell Bank Nifty in 19311-19573 range with stoploss some points above 19698 expecting decline towards 17953-17143 in coming days. But Bank Nifty opened higher at 19553 and stolposs of 19698 trigger at very opening. We didn’t send any further outlook because pattern was difficult to understand, we advised to wait and watch. Now, let’s have a fresh look at latest charts for further scenario.

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 05 Hourly chart

Elliott wave counts of Bank Nifty on 05 Hourly chart

This is 05 hourly time bar chart of Bank Nifty covering decline after all time high 32613 which I am analyzing independently.

It seems wave [1] completed from 32613-30209, 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). 23%-38%-61% retracement of whole wave from 32613-16791 is placed at 20009-22417-26311. So, 20009-22417-26311 are short term resistance levels. Bank Nifty already achieved 21462.

Now, we need to analyze the bounce started from low 16116 separately on lowest possible time frame to calculate very short term outlook.

Elliott wave counts of Bank Nifty on 30 minute chart

Elliott wave counts of Bank Nifty on 30 minute chart

This is 30 minutes time bar chart of Bank Nifty covering bounce started from low 16116 which I am analyzing independently.

It seems wave completed from 16116-21462 may be wave [A or 1] and wave [B or 2] may be in progress.

Within wave [B or 2], it seems wave (a or 1) may be completed at 17143 and wave (b or 2) may be in progress.

Again within wave (b or 2), it seems wave (i),(ii),(iii),(iv) may be completed till 18686 and wave (v) may be in progress.

38%-61% projection for wave (v) is placed at 19901-20651 but earlier high was 20324. So, 20324-20651 is the minimum target range for completion of wave (v) if wave completed at 18686 is really wave (iv). 100% projection for wave (v) is placed at 21867 which is a rare case.

23%-38% retracement of wave (iii) is placed at 19573-19108 and same is broken once but Bank Nifty bounced back. Now, 19573-19108 is still immediate support range and 19108 was immediate downside breakeven point. Bank Nifty if breaks and stay below 19108 for 15 minutes can result in further decline towards 18686-17143.

Overall, Bank Nifty is in positive zone as long as trading above 19108 and further bounce towards 20324-20651 is possible and breaking above 21867 is a rare case. But Bank Nifty if stays below 19108 for more than 15 minutes can result in further decline towards 18686-17143.

Conclusion and Outlook:-

For short/medium term, 20009-22417-26311 can act as short term resistance levels and Bank Nifty already entered in resistance range 20009-22417 after registering high 21462. Further outlook and levels can be calculated based on pattern of bounce started from 16116.

Very short term/Intraday, Bank Nifty is in positive zone and 19573-19108 can acts as immediate support range. Bank Nifty has possibility to bounce towards 20324-20651 as long as Bank Nifty trading above 19108 but breaking above 21867 is a rare case.

Bank Nifty if stays below 19108 for more than 15 minutes can result in further decline towards 18686-17143.

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

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Trading Strategy:

Bank Nifty is still volatile and fear in market is still there. We personally like to trade safe and doing hedged trades only. So, we are suggesting most probable and low risk trading strategies to give idea, traders who want to take risk or can manage trades can use these levels and conditions to plan their own trade.

For Intraday,

  1. Bank Nifty if breaks and stay below 19108 for more than 15 minutes then later bounce towards 19108-19573 can be used to sell Nifty with stoploss some points above 19573 expecting decline towards 18686-17143.

Pattern of Bank Nifty at bottom is not showing any strength, so I am not confident in buying. Those who want to buy or holding any longs can use 19108 (some points below 19108) as stoploss for longs. Any other low risk trade can be decided during market hours only after seeing fresh pattern.

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.

Get Bank Nifty and Bank Nifty Daily Analysis Reports and Live Updates 0n WhatsApp for Free.

Click Here to know more.

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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