Fresh Elliott Wave Outlook of Bank Nifty for 13 July 2020 Onward

| July 12, 2020

Bank Nifty opened lower at 22720, registers high 22835 but declined back again by more than 500 points to register low 22320 low 22673 and finally closed 508 points down 22398.

Friday, 22595-22295 was short term support range and Bank Nifty was in the positive zone as long as trading above 22295 and had the possibility of further bounce towards 23086 in coming sessions. But staying below 22295 for more than 15 minutes continually could result in a further decline towards 21768-21216.

Bank Nifty opened at 22720 and declined to enter in short term support 22595-22295, declined till 22320, and closed at 22398. Now, let’s have a fresh look at the latest charts for further scenario.

This analysis report is covering decline started from all-time high 32613 which I am analyzing independently in my last analysis report Bank Nifty Analysis, Outlook and Important levels on All Time Frame Charts

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 decline after all time high 32613 which I am analyzing independently.

It seems wave [1] completed at 30209, wave [2] may be completed at 31649 as big Irregular Correction, wave [3] may be completed at 21351, wave [4] may be completed at 25670 and wave [5] may be completed at 16116.

This impulse completed from 32613-16116 can be wave (A) or (C of Irregular Correction). 38%-61% retracement of whole wave from 32613-16791 is placed at 22417-26311. So, 22417-26311 are medium/short term resistance and Bank Nifty entered in this resistance.

From low 16116, It seems wave completed from 16116-21462 may be wave [A or 1], wave [B or 2] may be completed at 17105 and wave [C or 3] may be in progress. Minimum 100%-123% projection for wave [C or 3] is placed at 22451-23712 which is normal target range for completion of wave [C or 3]. Bank Nifty achieved 23080 till now.

Now, we need to analyze the bounce started from low 17105 separately on lowest possible time frame to calculate very short term outlook.

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 bounce started from low 17105 which I am expecting start of wave [C or 3] on the previous daily chart.

It seems wave (1) may be completed at 17672, wave (2) may be completed at 17313, wave (3) may be completed at 21807, wave (4) may be completed at 19507 and wave (5) may be in progress.

Wave (5) achieved minimum 38%-61% projection after breaks above 22412 whereas 100% projection for wave (5) is placed at 24209 which may or may not be achieved.

Within wave (5), it seems wave (i) may be completed at 20628, wave (ii) may be completed at 20030, wave (iii) may be completed at 22479, wave (iv) may be completed at 21768 and wave (v) may be completed at 23080 or still in progress.

Wave (v) achieved minimum 38%-61% projection after breaks above 22762 whereas next 100% projection is placed at 23898 which may or may not be achieved.

So, we need to analyze the progress of wave (v) started from  20926 separately on lowest possible time frame to calculate very short term outlook.

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 started from low 20926 which I am expecting start of inner wave (v) of wave (5) on the previous Hourly chart.

It seems wave completed at 21602 may be wave (a or 1), wave (b or 2) may be completed at 21026 as Irregular Correction and wave (c or 3) may be completed at 23080.

23%-38% retracement of progress of wave (c or 3) is placed at 22595-22295 which is short term support range and 22295 is short term downside breakeven point.

From high 23080, it seems wave [a or 1] may be completed at 22499, wave [b or 2] may be completed at 22994 and wave [c or 3] may be completed at 22320 or still in progress.

23%-38% retracement of progress of wave [c or 3] is placed at 22479-22577 which is intraday/immediate resistance and 22577 is intraday/immediate upside breakeven point. Bank Nifty if Breaks and stay above 22577 for more than 15 minutes continually can result in further bounce towards 23080.

Overall, Bank Nifty is in positive zone as long as trading above 22295 and has possibility of further bounce towards 23283-23768 in coming sessions if holds 22295. But if breaks and trade below 22295 for more than 15 minutes can result in further decline towards 21768-21216.

Conclusion and Outlook:-

For short/medium term, Bank Nifty broke major resistance 22417 and closed above this resistance for 2/3 days but pattern of bounce is not that supportive. So we need to concentrate on the pattern of bounce after 16116.

Short term, there is no change in outlook, 22595-22295 is immediate support range and 22295 is immediate downside breakeven point. Bank Nifty is in positive zone as long as trading above 22295 and has possibility of further bounce towards 23283-23768 in coming sessions.

But if breaks and trade below 22295 for more than 15 minutes can result in further decline towards 21768-21216.

Very short term, 22479-22577 is intraday/immediate resistance and 22577 is intraday/immediate upside breakeven point. Bank Nifty if Breaks and stay above 22577 for more than 15 minutes continually can result in further bounce towards 23080.

Trading Strategy:

  1. Low-risk trading strategy is to Buy on the decline in 22595-22295 range using stoploss some points below 22295 expecting 23080-23651 as upside targets in coming sessions. Bank Nifty if bounce and trades above 22577 for more than 15 minutes then stoploss will changed to 22479 on 15 minutes closing basis.

 

  1. Bank Nifty if breaks and stay below 22295 for more than 15 minutes then later bounce towards 22295-22595 can be used to Sell Bank Nifty using stoploss some points above 22595 expecting 21768-21216 as downside targets in coming sessions.

Those who want to sell or holding shorts can use 22577 (15 minutes closing basis) as stoploss for shorts.

Further, we will update about the formation of any important internal pattern or any change in trend/pattern/important levels or fresh support/resistance/breakeven point during market hours by WhatsApp Broadcast to all my “Bank Nifty Live Updates” subscribers.

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.

 Contact me:

Emailewavinod@gmail.com

Call: 9596937929/7889586728s

WhatsApp: 9796033671

Website: www.ewanalyst.com

                                                               

 

                                                                                                                                                  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tags: , , , ,

Category: Bank Nifty

About the Author ()

Comments are closed.