Elliott Wave Outlook and Trading Strategy of Bank Nifty for 24 August 2017 Onwards

| August 23, 2017 | 0 Comments

Bank Nifty opened higher at 24084, registered low 24074 and further bounced by more than 250 points to register day’s high 24350 and finally closed 342 points up at 24316.

Yesterday, Bounce towards 24366-24683 was expected and I suggested to buy Bank Nifty “if Bank Nifty trades above opening price after 9:31 AM” with stoploss of low (low made till 9:31 AM) expecting target 24366 which further can extend towards 24683.

Bank Nifty was trading above opening price at 9:31 AM (between 24090-24105) so our condition was satisfied and Bank Nifty bounced from that level by more than 250 points to register high 24350 without breaking low 24074, Trade gave more than 250 points profit with stoploss of 20-30 points. 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 30 Min chart

Elliott wave counts of Bank Nifty on 30 Min chart

This is 30 Minute 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.

I wave (A) already completed at 3852 then normal 38%-61% retracement for wave (B) is placed at 24366-24683 which is the expected range on upside whereas Bank Nifty achieved 24350 till now.

Now, we need to analyze bounce after 23852 on separate lowest possible time frame chart.

Elliott wave counts of Bank Nifty on 5 Min chart

Elliott wave counts of Bank Nifty on 5 Min chart

This is 5 min time bar chart of Bank Nifty covering move from low 23852 which I am expecting as start of wave (B).

It seems wave completed from 23852-24057 may be wave (a or 1), wave completed from 24057-23913 may be wave (b or 2) and Wave (c or 3) may be in progress from 23913.

And within wave (b or 2), it seems inner waves (i), (ii), (iii), (iv) or completed and (v) may be in progress. Wave (v) already achieved 61% projection after breaking above 24306 and next 100% projection is placed at 24421 which may or may not be achieved.

38% retracement of progress of wave (v) is placed at 24262 which is the point we can use as fresh stoploss for longs.

Conclusion and Outlook :

Bank Nifty bounce by 500 points from low as expected and we get great chance to buy Bank Nifty with just 20-30 points stoploss and got more than 250 points profit till now.

Now, Bank Nifty still has possibilities to bounce further towards 24366-24683 and 24262 can be used as fresh stoploss for existing longs.

Trading Strategy:

Bank Nifty longs taken today in 24090-24105 range can be hold with fresh stoploss of 24259 (below 24262) expecting further bounce towards 24366-24683. Keep trailing stoploss on every rise. Exit longs if Bank Nifty even touch 24259 and wait for fresh opportunity.

Stoploss of 24259 is only for existing longs and not for fresh longs. Wait for next opportunity for fresh trade.

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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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