Fresh Elliott Wave Analysis of Bank Nifty for 27 May 2019

| May 26, 2019

Bank Nifty opened higher at 30685, declined to register low 30564 and bounced back again by more than 700 points to registered day’s high 31275 and finally closed 803 points up at 31212.

Friday, 30590 was the immediate upside breakeven point and Bank Nifty was expected to bounce towards 31074 and above if breaks and stay above 30590 for more than 15 minute.

Bank Nifty broke above 30590, later declined to register low 30564 and bounced to achieve 31074. Intraday updates were sent through WhatsApp Broadcast during live market hours. 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 completed at 31705.

23%-38% retracement of wave (C or 3) is placed at 30462-29694 which is the major support and 29694 is the major downside breakeven point. Bank Nifty already entered in support range. We can think of any bigger downside reversal after breaking below 29694 only.

Now, we need to analyze the decline started from all time high 31705 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 31705.

It seems wave [a or 1] may be completed at 30760 and wave [b or 2] may be in progress as big Irregular Correction.

Within wave [b or 2], it seems wave (a) may be completed at 31074, irregular wave (b) may be completed at 30292 and wave (c) may be in progress.

Again with wave (c), it seems wave (i) may be completed at 30839, wave (ii) may be completed at 30564 and wave (iii) may be completed at 31275 or still in progress.

38% retracement of progress of wave (iii) is placed at 31003 which is immediate downside breakeven point. Bank Nifty if breaks and stay below 31003 for more than 15 minute can result in further decline towards 30564-30292.

Conclusion and Outlook:-

Bank Nifty is positive for short/Medium term with 30462-29694 as major support range. We can think of any bigger downward reversal after breaking below 29694 only.

26694 is a major breakeven point, Bank Nifty can either bounce further by 2851-4613 points from 30462-29694 Or if it breaks lower below 26694 then further decline towards 28500-26441 is possible. Otherwise, we need to look for any change by observing internal patterns.

Bank Nifty bounced by 900 points from support range, now we need to concentrate on internal pattern for further calculations.

Very Short term/Intraday, 31003 is the immediate downside breakeven point and Bank Nifty if breaks and stay below 31003 for more than 15 minute can result in further decline towards 30564-30292. Otherwise, Bank Nifty can bounce further above 31275.

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

Trading Strategy:

30200-29694 is low risk buying range for positional longs and upside target will be 2851-4613 points if Bank Nifty bounces without breaking below 29694. Further we need to observe internal waves for confirmation.
Positional selling can be done after break below 29694 only for downside targets 28500-26441 but entry levels and stoploss for selling can be calculated after breakdown only.

For Intraday, Bank Nifty must be assumed as positive as long as trading above 31003, selling can be planned after break below 31003 only. But there is no confident advance trade right now.

Any change in trend, or pattern or important levels or fresh support/resistance/breakeven point will be notified during market hours through WhatsApp Broadcast.

Disclaimer: This 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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