Elliott Wave Outlook and Trading Strategy of Bank Nifty for 09 August 2017 Onward

| August 8, 2017 | 0 Comments

Bank Nifty opened higher at 24942 and declined sharply just after registering day’s high 24966 by more than 400 points to register day’s low 24534 and finally closed 306 points down at 24599.

Yesterday, decline towards 24830-24739-24674 was expected with stoploss of 25077. I suggested Bank Nifty 10 August 25000 Put bought in 24966-25068 range can be hold with same stoploss of 25077 expecting minimum target 24830 which further can extend towards 24739-24674.

Bank Nifty declined till 24534 and 10 August 25000 Put bounced from 105-457 within two days (gave profit more than 300%) and finally closed at 340. Now, we need to analyze latest chart to find next move.

This report is covering Bank Nifty move after 30 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 22995.

It seems an Impulse has been completed from 22995 and correction has been started. Minimum 23%-38% retracement of this correction is placed at 24678-24356 whereas 24678 is already achieved and any big reversal is expected below 24356 only. 24356 is medium term Breakeven point.

Now, we need to analyze the decline start from high 25198 on separate 15 min chart to see the pattern formed.

Elliott wave counts of Bank Nifty on 15 Minute chart

Elliott wave counts of Bank Nifty on 15 Minute chart

This is 15 min time bar chart of Bank Nifty covering move from all time high 25198.

It seems wave completed from 25198-24591 may be wave (A or 1), wave completed from 24591-24979 may be wave (B or 2) and wave (C or 3) may be in progress from 24979.

Minimum 100%-123% projection for wave (C or 3) is placed at 24372-24228 which is the expected range on downside for completion of wave (C or 3).

And within wave (C or 3), it seems wave completed from 24979-24882 may be wave (i), wave completed from 24882-24960 may be wave (ii), wave completed from 24960-24547 may be wave (iii), wave completed from 24547-24730 may be wave (iv) and wave (v) may be in progress from 24730.

61%-100% projection of wave (v) is placed at 24463-24298 which is the expected range on downside for completion of wave (v) of (C or 3).

24372-24356 is the range on downside from where Bank Nifty can bounce further for a new high and 24298 can be referred as stoploss for longs.

Conclusion and Outlook :

Bank Nifty declined from 24969-25068 range by more than 400 points as expected and 25000 10 Aug Put gave 200-300% profit in 2 days.

Now, medium term breakeven point is 24356 below which we can think of any big reversal and Bank Nifty have possibility to bounce from this point. 24372-24356 is safe entry levels for any longs and 24298 can be referred as stop loss for longs.

Trading Strategy:

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

  1. Profit booking must be done in Bank Nifty 10 August 25000 Put suggested 02 days back as it is already giving minimum 200-300% profit and wait for next opportunity.
  2. Buying Bank Nifty 10 August 24300 call if Bank Nifty decline in 24372-24356 range with stop loss of 24289 (some points below 24298) expecting immediate targets 24730-24979 which further can extend towards 25198.

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 and Trading Strategy of Bank Nifty for 27 July 2017 Onward
  2. Bank Nifty Can Bounce Sharply Towards 24437-24704 in Short Term
  3. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 July 2017 Onward
  4. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 July 2017 Onward
  5. Elliott Wave Analysis Report of Bank Nifty for 28 June 2017
  6. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 June 2017 Onward
  7. Bank Nifty can bounce further towards 23464-23587 in Coming Sessions

 

 

 

Tags: , ,

Category: Bank Nifty

About the Author ()

Leave a Reply

Your email address will not be published. Required fields are marked *