Fresh Elliott Wave Analysis of Bank Nifty on All Time Frame

| August 13, 2019

Bank Nifty opened higher at 28293, bounced further to register day’s high 28602 but declined back again to close 321 points up at 28431. Now, let’s have a fresh look at latest charts to calculate further move.

This analysis report is covering all time move of Bank Nifty from life time low 3314. We are going to analyze life time move of Bank Nifty using all required time frames. First we need to start from monthly chart.

Elliott wave counts of Bank Nifty on Monthly chart

Elliott wave counts of Bank Nifty on Monthly chart

This is monthly time bar chart of Bank Nifty covering bounce after life time low 3314 which is the start of major wave cycle.

It seems major wave (1) completed from 3314-13303, (2) completed from 13303-8866 as Irregular Correction and wave (3) may be in progress.

Within major wave (3), it seems inner wave (i) completed from 8866-20907, (ii) may be completed from 20907-13407and wave (iii) may be completed from 13407-31783 or still in progress.

23%-38% retracement of progress of wave (iii) is placed at 27446-24763. So, 27446-24763 is major support and 24763 is major downside breakeven point. Bank Nifty is in long term positive zone as long as trading above 24763. Nifty already entered in major support 27446-24763.

Within wave (iii), it seems inner wave [1] completed from 13407-20575, [2] may be completed from 20575-17606, [3] may be completed from 17606-27652, [4] may be completed from 27652-24240 as Irregular Correction and [5] may be completed from 24240-31783 or still in progress.

Or may be wave [4] is still in progress as big Irregular Correction. We need to analyze the decline started from all time high 31783 on lowest possible time frame to check its pattern.

Elliott wave counts of Bank Nifty on 05 Hourly chart

Elliott wave counts of Bank Nifty on 05 Hourly chart

This is 05 hourly time bar chart of Bank Nifty covering decline from all time high 31783 which I am analyzing independently.

It seems wave completed from 31783-30623 may be wave (A or 1), wave completed at 31699 may be wave (B or 2) as Irregular Correction and wave (C or 3) may be in progress.

Within wave (C or 3), It seems wave (i) may be completed at 30346, wave (ii) may be completed at 30870, wave (iii) may be completed at 27392 and wave (iv) may be in progress.

23%-38% retracement of progress of wave (C or 3) is placed at 28399-29022. So, 28399-29022 is major resistance and 29022 is major upside breakeven point. Bank Nifty is in negative zone as long as trading below major upside breakeven point 29022. Bank Nifty if breaks and close above 29022 can result in further bounce towards 30799-31752 otherwise further decline towards 27392-24240 is possible.

Bank Nifty already entered in Major Resistance 28399-29022, so we need to analyze the progress of wave (iv) started from 27392 on separate lowest possible time frame.

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 bounce after low 27392 which I marked as start of wave (iv) on 05 hourly chart.

It seems wave completed from 27392-28174 may be [a or 1], wave completed from 28174-27354 may be wave [b or 2] and wave [c or 3] may be completed at 28602 or till in progress.

23%-38% retracement of progress of wave [c or 3] is placed at 28349-28194. So, 28349-28194 is immediate support and 28194 is immediate downside breakeven point. Bank Nifty is in short term positive zone as long as trading above immediate downside breakeven point 28194. Bank Nifty if breaks and stay below 28194 can result in further decline towards 27534-27392 otherwise further bounce towards 28602-29022 is possible.

Conclusion and Outlook:-

For long term, Bank Nifty is in positive zone with 27446-24763 as major support. But this is a big support range and is not suitable for trading, so we will concentrate on Support/Resistance based on internal patterns.

For Short/Medium Term, Bank Nifty is in negative zone with 28399-29022 as major resistance and 29022 as major upside breakeven point and there is possibility of further decline towards 27392-24240. But Bank Nifty if breaks and close above 29022 can result in further bounce towards 30799-31752.

For Intraday/Very Short Term, Bank Nifty is in short term positive zone with 28349-28194 as immediate support and 28194 as immediate downside breakeven point. Bank Nifty if breaks and stay below 28194 can result in further decline towards 27534-27392 otherwise further bounce towards 28602-29022 is possible.

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

Trading Strategy:

Bank Nifty if breaks and stay below 28194 for more than 15 minutes then further bounce towards 28194-28349 can be used to Sell Bank Nifty or Buying suitable Bank Nifty Puts using stoploss of 28351 expecting decline towards 27534-27392 in coming days.

Bank Nifty if completes downside corrective pattern in 28349-28194 range then buying can be done using stoploss below 28194 expecting bounce towards 28602-29022. Confident buying can be decided during market hours only because we need confirmation of downside corrective pattern during market hours. Updates on this trade will be given to “Live Updates Subscribers” during market hours.

Further, any change in trend, or pattern or important levels or fresh support/resistance/breakeven point will be updated 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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