Elliott Wave Analysis Report of Bank Nifty for 25 July 2017

| July 25, 2017 | 0 Comments

Bank Nifty opened higher at 24307 and declined sharply just after opening to register day’s low 24234 but bounce back again by more than 200 points to register new all time high 24460 and finally closed 163 points up at 24420.

Yesterday, bounce towards 24564-24871 was expected and I suggested buying Bank Nifty 27 July 24200 call in 24257-24200 range with stoploss 24191 expecting minimum target 24323-24401 which further can extend towards 24564-24871.

Bank Nifty bounced from 24234-24460 today and Bank Nifty 27 July 24200 call bounce from 143-254 and finally closed at 226. Now, we need to analyze latest charts for further outlook.

This report is covering Bank Nifty move after 22 June 2017 high 23897 and earlier wave counts are explained in my previous analysis report Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 July 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 23897.

It seems some type of corrective pattern completed at 22995 and new upside impulse has been started. And may be inner wave (1) of Impulse is completed from 22995-23330, wave (2) may be completed at 23163 as an irregular correction and wave (3) may be completed at 24299 and wave (4) may be completed at 24066 and wave (5) may be running from 24066.

Minimum 38%-61% projection for wave (5) is placed at 24564-24871 which is the expected targets range for completion of wave (5).

Now, we need to analyze progress of wave (5) started from 24066 on separate 5 min chart to predict next move.

Elliott wave counts of Bank Nifty on 5 Min chart

Elliott wave counts of Bank Nifty on 5 Min chart

This is 5 min time bar chart of Bank Nifty covering move from 24066 which is the start of wave (5) on previous chart.

It seems wave completed from 24066-24182 may be wave inner wave (i) of (5), wave completed from 24182-24133 may be wave (ii) and wave completed from 24133-24412 may be wave (iii) and wave (iv) may be completed from 24412-24343 and wave (v) may be running from 24343.

Minimum 38%-61% projection for wave (v) is placed at 24475-24556 which is the expected target range for completion of wave (v).

Within wave (v), it seems wave 1 may be completed at 24449 and wave 2 may be completed at 24382 as an irregular correction or still in progress.

24382 [end of wave 2 of (v) of (5)] can be referred as breakeven point and same can be used as stoploss for longs.

Conclusion and Outlook

Bank Nifty register new all time high 24460 after breaking earlier high 24299 and it still has possibility bounce further towards 24564-24871 for completion of wave (5). 38% retracement of wave (iii) 24305 is the point below which we can think of any reversal.

24382, end of wave 2 of (v) can be used as fresh stoploss for any longs.

Trading Strategy:

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

 

  1. Bank Nifty 27 July 24200 call bought in 24257-24200 range can be hold with stoploss of 24382 [end of wave 2 of (v)] expecting minimum target 24564 which further can extend towards 24871.
  2. Bank Nifty 27 July 24300 call can be bought again if Bank Nifty decline towards 24382-24343 range with stoploss of 24299 expecting minimum target above 24460.

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Also Read,

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

 

 

 

 

 

 

 

 

 

 

 

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Category: Bank Nifty

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