Fresh Elliott Wave Analysis of Bank Nifty for 22 May 2019

| May 21, 2019

Bank Nifty opened higher at 30862, registered new all time high 30926 but decline back again by more than 600 points to register day’s low 30274 and finally closed 475 points down at 30284.

Yesterday, 30283-29947 was immediate support with 29947 as immediate downside breakeven point. Any downside reversal was expected after breaks below 29947 only.

I sent update during live market hours that 30760-30840 is good intraday upside resistance and decline below 30600 is possible, I also sent further updates after Bank Nifty decline below 30600. Bank Nifty declined further and entered in support range. 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 30926 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. Bank Nifty registered high 30296 till now.

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 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 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 30926 and wave [4] may be in progress.

23%-38% retracement of progress of wave [3] is placed at 30359-30008 which is immediate support with 30008 as immediate downside breakeven point. We can think of any downside reversal after breaking below 30008.

Now, we need to analyze the progress of wave [4] 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 new all time high 30926 which I am expecting start of inner wave [4] of wave (v) on the previous chart.

It seems wave completed at 30647 may be wave [a or 1], wave completed at 30834 may be wave [b or 2] and wave [c or 3] may be in progress from 30834.

Within wave [c or 3], it seems wave (i) may be completed at 30655, wave (ii) may be completed at 30755 and wave (iii) may be completed at 30274 or still in progress.

23%-38% retracement of progress of wave [c or 3] is placed at 30406-30487 which is the immediate resistance with 30487 as immediate upside breakeven point. We can think of any upside reversal after breaks/stay above 30487 for 15 minute.

Conclusion and Outlook:-

Bank Nifty is in positive zone and has possibility to bounce further towards 31138-32754 with 30359-30008 as immediate downside support. Bank Nifty already entered in support range 30359-30008. We can think of any downside reversal after breaks below 30008 only.

Very Short term/Intraday, 30406-30487 is the immediate resistance with 30487 as immediate upside breakeven point. Bank Nifty if breaks and stay above 30487 for 15 minute can result in further bounce towards 30926 and above in coming sessions.

Trading Strategy:  

A corrective pattern must complete in 30359-30008 range for bounce towards but this corrective pattern is not completed yet. So, we either need to wait for completion of corrective pattern before 30008 or need to wait for break above breakeven point to buy. We can thing of selling after break below 30008 only.

Overall, we need to observe move during live market hours tomorrow to decide confident trade. 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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