Elliott Wave Outlook and Trading Strategy of Bank Nifty for 21 May 2019

| May 20, 2019

Bank Nifty opened huge gap up at 30230, bounced further by more than 600 points to register fresh all time high 30827 and finally closed 1309 points up at 30759.

Yesterday, 29164 was immediate downside breakeven point/trend deciding level and any downside reversal was expected after break below 29164 only. No advanced or market hours trade was suggested and existing hedged trade was closed in loss after huge gap up opening. Now, we need to analyze fresh charts to calculate further move.

This analysis report is covering very last bounce started from low 24240 which I am expecting as inner wave [4] or [5] of (iii) of bigger (3) in my last analysis report Elliott Wave Outlook and Trading Strategy of Bank Nifty for 25 February 2019 Onward

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 covering move from low 24240.

It seems wave completed from 24240-27754 may be wave (A or 1), wave completed from 27754-26441 may be wave (B or 2) and wave (C or 3) may be in progress from 26441.

Within wave (C or 3), it seems wave (i) may be completed at 27589, wave (ii) may be completed at 26617, wave (iii) may be completed at 30670, wave (iv) may be completed at 28525 and wave (v) may be completed at 30827 or still in progress.

Wave (v) achieved minimum projection after breaking above 30670 and next 61%-100% projection is placed at 31138-32754 which may or may not be achieved.

Now, we need to analyze the progress of wave (v) separately on lowest time frame chart to check its pattern and internal wave counts.

Elliott wave counts of Bank Nifty on 05 Minute chart

Elliott wave counts of Bank Nifty on 05 Minute chart

This is 05 Minute time bar chart of Bank Nifty covering move from 28525 which I am expecting start of inner wave (v) of wave (C or 3) on the previous chart.

It seems wave [1] may be completed at 29036, wave [2] may be completed at 28922 and wave [3] may be completed at 30827 or still in progress. Wave [3] is sharp and fast without any reasonable correction, so it is difficult to identify its inner waves.

23%-38% retracement of progress of wave [3] is placed at 30283-29947 which is immediate support with 29947 as immediate downside breakeven point. We can think of any downside reversal after breaking below 29947.

Conclusion and Outlook:-

Bank Nifty is in positive zone and has possibility to bounce further towards 31138-32754 with 30283-29947 as immediate downside support. We can think of any downside reversal after breaks below 29947 only.

There is no separate support/resistance or breakeven point for intraday because of sharp and bigger move. We need to concentrate on internal wave pattern to calculate intraday support/resistance/breakeven point during market hours.

Trading Strategy:  

Bank Nifty has possibility to bounce further towards 31138-32754 with 30283-29947 as support but trades needs to be decided based on internal patterns inedited during market hours.

Patterns can complete or change quickly because of quick and volatile moves. So, any change in trend, or pattern or important levels will be notified during market hours through WhatsApp Broadcast.

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.

 

         

 

                                                                                                                                                  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Category: Bank Nifty

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