Elliott Wave Outlook and Trading Strategy of Bank Nifty for 03 September 2018 Onward

| September 2, 2018

Bank Nifty opened lower 27998 at and bounced to register day’s high 28157 but didn’t sustain at that higher level and declined back to register day’s low 27940 and finally closed 41 points down at 28061.

Friday, Bank Nifty was still positive as long as trading above short term breakeven point 27725 with possibility of bounce towards 28624-29171 in coming days. 28107 was immediate breakeven point on upside and Bank Nifty was expected to bounce towards 28344-28388 if trade above 28107 continuously for 15 minute.

Trading strategy was to buy Bank Nifty 28300 Call of 06 Sep expiry if Bank Nifty breaks and trade above 28107 continuously for 15 minute using exact stoploss of 28029 expecting minimum bounce towards 28344-28388 in coming days. Bank Nifty traded around 28107 for 15-20 minutes but didn’t sustain above 28107 continuously for 15 minutes and declined back. Now, we need to analyze fresh charts to calculate further move.

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 on all time Frame charts Dated 01 April 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] (explained in my all time frame report). There is no change in wave counts on this chart.

It seems wave [i],[ii],[iii], may be completed till 25198, wave [iv] may be completed at 23605 as irregular correction and wave [v] may be in progress.

Within wave [v], it seems wave completed at 24651 may be wave (1), wave completed at 24087 may be wave (2), wave completed at 27164 may be wave (3), wave completed at 26060 may be wave (4) and wave (5) may be completed at 28388 or still in progress.

Wave (5) achieved 61% projection after breaking above 28259 and next 100% projection is placed at 29619 which may or may not be achieve. Bank Nifty achieved 28388 till now.

Now, we need to analyze wave (5) of [v] started from 26060 on separate lowest time frame chart to calculate its inner waves.

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 move from low 26060. This bounce I marked as start of wave (5) as marked on Daily chart.

Wave completed from 26060-27164 may be wave (i) of (5), wave completed from 27164-26671 may be (ii), wave completed from 26671-28378 may be (iii), wave (iv) may be completed at 27739 as simple zigzag and wave (v) may be in progress.

Minimum 38%-61% projection for wave (v) is placed at 28624-29171 which is the minimum expected range for completion of wave (v), if wave (iv) already completed at 27739.

[38% retracement of wave (iii) is placed at 27725 which is still short term breakeven point on downside below which we can think of any downward reversal only].

Within wave (v), wave from 27739-28325 seems (abc) type followed by next wave from 28325-27782 is also a (abc) move, but next bounce after 27782 looks like an impulse.

So, I am ignoring the (abc-abc) move from 27739-28325-27782 because it can form Ending Diagonal Triangle later and concentrating on Impulsive bounce started from 27782 only for further trade.

Elliott wave counts of Bank Nifty on 15 Minute chart

Elliott wave counts of Bank Nifty on 15 Minute chart

This is the 15 Minute time bar chart of Bank Nifty covering move from 27782.

It seems an impulse completed from 27782-28388 may be wave [A or 1] and wave [B or 2] may be in progress from 28388.

Within wave [B or 2], it seems wave completed at 28164 may be wave (a or 1), wave completed at 28344 may be wave (b or 2) and wave (c or 3) may be completed at 27940 or still in progress.

38% retracement of wave (c or 3) is placed at 28094 which is immediate breakeven point on upside and Bank Nifty if breaks and trade above 28094 continuously for 15 minute can result of further bounce towards  28344-28388 and above in coming days.

Conclusion and Outlook:

For short term, same there is no change in outlook, Bank Nifty is still positive as long as trading above short term breakeven point 27725 and there is possibility of bounce towards 28624-29171 in coming days. We can expect any bigger reversal after break below 27725 only.

For Intraday or very short term, 28094 is immediate breakeven point on upside and Bank Nifty if breaks and trade above 28094 continuously for 15 minute can result of further bounce towards  28344-28388 and above. And breaking above 28388 can confirm further bounce towards 28624-29171 in coming days.

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

Trading Strategy:  

According to fresh conditions on charts: –

Same as I explained Friday, Overall conditions are bullish with possibility of bounce towards 28624-29171 in coming days with 27725 as breakeven point on downside. So, our trading must strategy must be buying on Dips whenever getting opportunity and avoiding selling.

For intraday very short term, Bank Nifty if breaks and trade above 28094 continuously for 15 minute (price must stay above 28094 continuously for 15 minutes) then any decline towards 28094-28050 can be used to buy 28300 Call  of 06 Sep expiry with exact stoploss of 28019 expecting minimum 28344-28388 in coming days. Hold for next day only if Bank Nifty breaks above 28388.

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

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. Bank Nifty can give one more Bounce of 350-500 points soon
  2. Bank Nifty can bounce sharply towards 27187-27591 in coming days
  3. Further Elliott Wave Analysis updates of Bank Nifty for 03 July 2018 onward
  4. Elliott Wave Analysis Report of Bank Nifty for June 2018 Expiry
  5. Bank Nifty can bounce above 27164 in coming days
  6. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 06 June 2018 Onward
  7. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 May 2018 Onward
  8. Elliott Wave Analysis of Bank Nifty on All Time Frame Charts [ Dated : 01-April-2018 ]
  9. Bank Nifty Can Bounce by 1300-2000 Points After Achieving 24048-23842
  10. Bank Nifty Can Decline Sharply by 1000 Points After Achieving 25009
  11. Elliott Wave Analysis of Bank Nifty for All Time Frames as on 08 January 2018
  12. Bank Nifty can bounce above 25780 sharply in coming days
  13. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 December 2017 Onward
  14. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 November 2017 Onward
  15. Elliott Wave Targets of Bank Nifty for October 2017 Expiry

Contact me:

Emailewavinod@gmail.com

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Website: www.ewanalyst.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Category: Bank Nifty

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