Elliott Wave Outlook and Trading Strategy of Bank Nifty for 01 January 2018 Onward

| January 1, 2018 | 0 Comments

Bank Nifty opened flat at 25484, register low 25450 and bounced back again to registers day’s high 25566 and finally closed 49 points up at 25539.

Friday, bounce above 25780 was expected and 25555 was breakeven point for upside. I suggested Bank Nifty if get in 25400-25322 range then 25300 Call of 04 Jan 18 Expiry can be bought using stoploss of 25279 expecting targets 25780 and above.

OR Bank Nifty “if breaks above 25555” and “trades above opening price after 9:31 AM” (both conditions must match) then small risk can be taken to buy Bank Nifty 25400 call of 4 Jan using stoploss of 25479 expecting targets above 25780.

Bank Nifty broke breakeven point 25555, registers high 25566 and finally closed at 25539. 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. There is no 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 Hourly chart

Elliott wave counts of Bank Nifty on Hourly chart

This is Hourly 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, wave 4 may be completed at 25417 as complex correction and wave 5 may be in progress from 25417.

38%-61% projection for wave 5 is placed at 25853-26122 which is the possible upside targets for Bank Nifty for completion of wave 5 if wave 4 is already completed at 25417.

Now, we need to analyze last impulsive wave started from low 25417 on separate lowest possible time frame chart.

Elliott wave counts of Bank Nifty on 5 Minute chart

Elliott wave counts of Bank Nifty on 5 Minute chart

This is 5 Minute time bar chart of Bank Nifty covering move from 25417 which is the start of wave 5 on the previous chart.

It seems wave completed from low 25417-25556 may be wave (i), wave completed from 25556-25488 may be wave (ii) as Irregular Correction and wave (iii) may be in progress from 25488.

Minimum 100%-161% projection for wave (iii) of wave 5 is placed at 25672-25712 which is the minimum possible range for completion of wave (iii) if wave (ii) is already completed at 25488.

25488 [end if wave (ii)] can be use as stoploss for any longs.

Conclusion and Outlook:

There is no change in outlook, Wave counts on the charts are indicating that Bank Nifty is still positive for targets above 25780 as long as trading above 25322. And 25488 can be used as exact stoploss for any longs.

25488 is the pattern negation point and we need to look for fresh pattern again if Bank Nifty even touch 25487.

Trading Strategy:

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

  1. Bank Nifty 25400 call of 4 Jan 18 Expiry if bought Friday can be hold with fresh stoploss of 25487 expecting targets 25780 and above in coming days.
  2. Bank Nifty if get in 25539-25490 range then fresh 25400 Call of 04 Jan 18 Expiry can also be bought using stoploss of 25487 expecting targets 25780 and above in coming days.

 

 

Contact me:

Emailewavinod@gmail.com

Call: 9796033671

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Website: www.ewanalyst.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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