Elliott Wave Outlook and Trading Strategy of Bank Nifty for 18 September 2017 Onward

| September 17, 2017 | 0 Comments

Bank Nifty opened lower at 24840 and registered low 24791 but bounced back again to register high 24916 and finally closed 67 points down at 24844.

Friday, bounce above 24994 was expected and 24679 was breakeven point for downside. I suggested buying Bank Nifty if get around 24700-24650 with stoploss 24629 expecting targets above 24994. But Bank Nifty declined till 24791 and bounced back and our buying 24700-24650 range was not trigged. 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 24151 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 completed from 24246-24994 may be wave (iii) and wave (iv) may be in progress from 24994.

And 38% retracement for wave (iv) is at 24708 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.

And within wave (iv), it seems wave (a) may be completed at 24791, wave (b) may be completed at 24916 and (c) may be in progress.

Normal 100%-123% projection for wave (c) is placed at 24713-24665 which is the possible range from where Bank Nifty can bounce further towards 24994 and above within coming days.

Conclusion and Outlook

Wave counts on the charts are indicating that Bank Nifty still has possibility to bounce further above 24994 to complete the impulse started from 24151.

24713-24665 is the range from where Bank Nifty can bounce again and 24708 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 if decline towards 24708-24665 then 21 Sep 24600 Call can be bought using 24629 expecting targets 24916-24994 in coming days.

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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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