Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 August 2018 Onward

| August 22, 2018

Bank Nifty opened flat at 28295, registers day’s high 28305 and traded in 28151-28276 range rest of the day and finally closed 16 points down at 28257.

Yesterday, I had mentioned that Bank Nifty is still positive as long as trading above immediate breakeven point 28114. So, bounce towards 28624-29171 was expected in coming days and 28114 was the immediate breakeven point on downside .We can think of any small or big reversal after break below 28114 only.

Trading strategy was to buy Bank Nifty 28600 call of 30 Aug 2018 expiry in 28274-28114 range and hold till further updates.  Bank Nifty opened at 28295, decline till 28151 and our trade was activated [28600 call of 30 Aug 2018 Expiry was available in 85-70]. Now, we need to analyze fresh charts to calculate further move.

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 on all time Frame charts Dated 01 April 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] (explained in my all time frame report). There is no change on wave counts on this chart.

It seems wave [i],[ii],[iii], may be completed till 25198, wave [iv] may be completed at 23605 as irregular correction and wave [v] may be in progress.

Wave [v] achieved 38%-61% projection after breaking above 28296 whereas next 100% projection is placed at 31197 which may or may not be achieve. Bank Nifty achieved 28378 till now.

Now, we need to analyze wave [v] started from 23605 on separate lowest time frame chart to calculate its inner waves.

Elliott wave counts of Bank Nifty on 05 Hourly chart

Elliott wave counts of Bank Nifty on 05 Hourly chart

This is 5 Hourly time bar chart of Bank Nifty covering bounce from 23605 which I had marked as start of inner wave [v] of wave [3] on the previous chart.

It seems wave completed at 24651 may be wave (1) of [v], wave completed at 24087 may be wave (2), wave completed at 27164 may be wave (3), wave completed at 26060 may be wave (4) and wave (5) may be in progress.

Wave (5) achieved 38%-61% projection after breaking above 28259 and next 100% projection is placed at 29619 which may or may not be achieve. Bank Nifty achieved 28378 till now.

Now, we need to analyze wave (5) of [v] started from 26060 on separate lowest time frame chart to calculate its inner waves.

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 low 26060. This bounce I marked as start of wave (5) as marked on 05 Hourly chart.

Wave completed from 26060-27164 may be wave (i) of (5), wave completed from 27164-26671 may be wave (ii), wave completed from 26671-28378 may be wave (iii), wave completed from 28378-27739 may be wave (iv) and wave (v) may be in progress from 27739.

Minimum 38%-61% projection for wave (v) is placed at 28624-29171 which is the minimum expected range for completion of wave (v), if wave completed at 27739 is really wave (iv).

38% retracement of wave (iii) is placed at 27725 which is still short term breakeven point on downside below which we can think of any downward reversal only.

Now, we need to analyze wave (v) started from 27739 on separate lowest time frame chart to calculate its inner waves.

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 move from 27739 which I am expecting wave (v) of (5) on previous chart.

It seems wave completed from 27739-28053 may be wave [1] (pattern is not clear), wave completed from 28058-27779 may be wave [2] and wave [3] may be in progress.

Within wave [3], it seems wave 1 may be completed 27867, wave 2 may be completed at 27826, wave 3 may be completed at 28120, wave 4 may be completed at 28054 and wave 5 may be completed at 28311 or still in progress.

38% retracement of progress of wave [3] is placed at 28114 which is the immediate breakeven point on downside and same can be used as stoploss for any longs. We can think of any small or big reversal after break below 28114 only.

Conclusion and Outlook:

There  is no change in outlook, Bank Nifty is still positive as long as trading above immediate breakeven point 28114 and there is possibility for minimum bounce towards 28624-29171 in short term. We can think of any small or big reversal after break below 28114 only.

Otherwise 27725 is short term breakeven point on downside and any bigger reversal can be expected after break below 27725 only.

We need to keep all these conditions in mind while deciding next trade.

Trading Strategy:  

According to fresh conditions on charts: –

The 28600 Call of 30 Aug Expiry bought in 28274-28114 range can be hold expecting 28624-29171 as minimum upside target. Exit this call if Bank Nifty trades below 28114 continuously for 15 Minutes.

Otherwise, Bank Nifty if breaks and trades below 28114 continuously for 15 minutes then 28200 Put of 30 Aug Expiry can be bought in 28114-28250 in range light quantity using stoploss above 28252.

These are low risk trading strategies I can suggest in these conditions, otherwise traders can plan their own trade based on the conditions explained above.

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.

 

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. Bank Nifty can give one more Bounce of 350-500 points soon
  2. Bank Nifty can bounce sharply towards 27187-27591 in coming days
  3. Further Elliott Wave Analysis updates of Bank Nifty for 03 July 2018 onward
  4. Elliott Wave Analysis Report of Bank Nifty for June 2018 Expiry
  5. Bank Nifty can bounce above 27164 in coming days
  6. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 06 June 2018 Onward
  7. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 23 May 2018 Onward
  8. Elliott Wave Analysis of Bank Nifty on All Time Frame Charts [ Dated : 01-April-2018 ]
  9. Bank Nifty Can Bounce by 1300-2000 Points After Achieving 24048-23842
  10. Bank Nifty Can Decline Sharply by 1000 Points After Achieving 25009
  11. Elliott Wave Analysis of Bank Nifty for All Time Frames as on 08 January 2018
  12. Bank Nifty can bounce above 25780 sharply in coming days
  13. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 December 2017 Onward
  14. Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 November 2017 Onward
  15. Elliott Wave Targets of Bank Nifty for October 2017 Expiry

Contact me:

Emailewavinod@gmail.com

Call: 9596937929

WhatsApp: 9796033671

Website: www.ewanalyst.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Category: Bank Nifty

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