Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 March 2018 Onward

| March 13, 2018

Bank Nifty opened lower at 24624, registered low 24610 and bounced back again to register high 25009 but didn’t sustain at higher level and declined back again by more than 350 points to register low 24597 and finally closed 74 Points up at 24738.

Yesterday, I had mentioned the bounce from low 24048 still looks corrective, still there is no sign of any big upside reversal seems and any bigger reversal for new high can be expected only after a sharp bounce towards 25050-25700 and bounce already took longer than normal time. 24588 was immediate breakeven point below which further decline towards 24381-24259 was expected.

Buying of 24700 Put of this weekly expiry was suggested if Bank Nifty breaks and trade below 24588 for 15 minutes using stoploss of 24687 expecting 24381-24259 as downward targets. Bank Nifty traded above 24588 for whole day. Now we need to analyze latest charts for further scenario.

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 for All Time Frames as on 08 January 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]. This is the same chart with explanation which I had explained in my last report because there is no change in wave counts on this chart.

It seems wave [i],[ii],[iii],[iv] may be completed till 23611 and wave [v] may be in progress from 23611. Wave [v] achieved its 38% projection placed at 26511 whereas 61% projection placed at 28302 which may or may not achieve.

Within wave [v] after 23611, the bounce is combination of repeated (ABC) waves. So, either there is Ending Diagonal Triangle pattern in progress or it is Irregular Correction at top. Exact pattern is not yet clear, so we need to concentrate on the decline started from 27652 until we get clarity.

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 decline from 27652.

It seems that the decline started from high 27652 is impulsive with wave 1 completed from 27652-27116, wave 2 may be completed from 27116-27613, wave 3 may be completed from 27613-25023, wave 4 may be completed from 25023-25723 as irregular correction and wave 5 may be completed at 24048 or still in progress.

38%-61% retracement of the whole wave [27652-24048] is placed at 25424-26275 which is the expected range on upside for wave (B), if wave impulse is already completed at 24048 as wave (A).

Other Possibility: But if wave completed at 24048 is inner wave (iii) of 5 rather than wave 5 then Bank Nifty can give one more decline below 24048 to complete wave (v) of 5. 38% retracement of progress of wave 5 is placed at 24687 in this case which is also broken.

So, we need to analyze the bounce started from low 24048 to check if we can get some clue.

Elliott wave counts of Bank Nifty on 15 Minute chart

Elliott wave counts of Bank Nifty on 15 Minute chart

This is 15 Minute time bar chart of Bank Nifty covering bounce from low 24048.

The whole pattern is not completely clear but casually it seems wave (A or 1) completed from 24048-24564, (B or 2) completed from 24564-24259 and wave (C or 3) in progress. Wave (C or 3) achieved normal 100%-123% projection and next 161% projection is placed at 25093.

Within wave (C or 3), it seems inner wave (i), (ii), (iii) already completed till 24993 and wave (iv) may be in progress as Irregular Correction. So, there is possibility of one more bounce for 25009 and above to complete wave (v) of (C or 3).

Within wave (iv), inner wave (a) and irregular (b) seems completed but (c) may be either completed at 24597 or still in progress because the last bounce from 24597-24902 looks like a 3 wave’s corrective move.

Overall, there is possibility of one more bounce for high above 25009 soon either from present levels or after registering low below 24597.

Conclusion and Outlook:

Overall pattern is not completely clear but there is possibility of Irregular Correction at top with irregular wave (b) completed at 25009. So, we can expect one more bounce above 25009 soon either from present levels or after registering one more low below 24597.

We need to keep all these conditions in mind while planning next trade and further we can conclude either after a break above 25009 or after negation of Irregular Correction pattern.

Trading Strategy:

There is possibility of one more bounce for high above 25009 in coming days but lower range is not confirmed. So, 25500 Call of 28 Mar 2018 can be bought on decline towards 24597 without any stoploss expecting targets above 25009 soon.

Buy Call in light quantity because we are trading without stoploss. 25500 call is trading around 112 right now. Use dips to buy call.

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 Analysis of Bank Nifty for All Time Frames as on 08 January 2018”
  2. Bank Nifty can bounce above 25780 sharply in coming days
  3. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 December 2017 Onward
  4. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 November 2017 Onward
  5. Elliott Wave Targets of Bank Nifty for October 2017 Expiry
  6. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 16 October 2017 Onward
  7.  Bank Nifty can Bounce Above 25198 Again in Medium Term
  8.  Long Term And Short Term Elliott Wave Analysis Report of Bank Nifty for 14 August 2017 Onward
  9. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 27 July 2017 Onward
  10. Bank Nifty Can Bounce Sharply Towards 24437-24704 in Short Term
  11. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 July 2017 Onward
  12. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 July 2017 Onward
  13. Elliott Wave Analysis Report of Bank Nifty for 28 June 2017
  14. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 June 2017 Onward
  15. Bank Nifty can bounce further towards 23464-23587 in Coming Session

Contact me:

Email: ewavinod@gmail.com
Call: 9796033671
WhatsApp: 9796033671
Website: www.ewanalyst.com

Category: Bank Nifty

About the Author ()

Comments are closed.