Elliott Wave Outlook and Trading Strategy of Bank Nifty for 14 September 2017 Onwards

| September 14, 2017 | 0 Comments

Bank Nifty opened higher at 24818 and registered low 24737 but bounced back again by more than 200 points to register high 24948 and finally closed at 47 points up at 24831.

Yesterday, bounce above 24821 was expected and 24601 was breakeven point for downside. I suggested buying Bank Nifty if get around 24620-24590 expecting targets above 24821.

But Bank Nifty achieved our target at opening and bounced further till 24948. So, our trade was negated. Now, we need to analyze latest chart to find next move.

This report is covering Bank Nifty move after 02 August 2017 high 25198 and earlier wave counts are explained in my last previous analysis report Long Term and Short Term Elliott Wave Analysis Report of Bank Nifty for 14 August 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 25198 which I am expecting as start of corrective pattern.

It seems an impulse is already completed from 25198-23852 as marked on chart and this impulse can be wave (A) of correction. If wave (A) completed at 23852, then wave (B) already achieved normal 61% retracement after breaking above 24683.

And within wave (B), it seems wave completed from 23852-24494 may be wave (a), wave completed from 24494-24151 may be wave (b) and wave (c) may be in progress from 24151.

Wave (B) retraced more than 78% which is point to keep in mind. So, this whole pattern explained on this chart is just to keep the picture in mind otherwise we need to concentrate on last impulsive bounce started from 24152 to decide trades.

Now, we need to analyze bounce from 24151 on separate lowest possible time frame chart.

Elliott wave counts of Bank Nifty on 15 Min chart

Elliott wave counts of Bank Nifty on 15 Min chart

This is 15 min time bar chart of Bank Nifty covering move from low 24151 which is the start of wave (c) of (B) on the previous chart.

It seems wave completed from 24151-24413 may be wave (i), wave completed from 24413-24246 may be wave (ii) and wave (iii) may be completed at 24948 or still in progress.

23%-38% retracement of wave (iii) started from 24246-24948 is placed at 24782-24679 which is the range from where Bank Nifty can bounce again and 24679 can be referred as breakeven point for downside below which we can think about any reversal and same can be used stoploss for any longs.

Conclusion and Outlook

Wave counts on the charts are indicating that Bank Nifty still has possibility to bounce further above 24948 to complete the impulse started from 24151.

24782-24679 which is the range from where Bank Nifty can bounce again and 24679 which can be referred as breakeven point for downside below which we can think about any reversal and same can be used stoploss for any longs.

Trading Strategy:

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

Bank Nifty may open Gap up or bounce straightway from present levels but breakeven point is 24679 and safe entry levels for initiating longs is near breakeven point only. So, longs can be initiated if get around 24700-24650 (near 24601) expecting targets above 24948 with stoploss 24629.

If Bank Nifty has to bounce from present levels the stoploss for longs would be today’s close 24831. But any trade can be decided during market hours only after seeing the personality of next wave.

And experienced traders can trade by their own based on conditions mentioned above.

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Also Read,

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Category: Bank Nifty

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