Fresh Elliott Wave Outlook of Bank Nifty for 20 April 2020 Onward

| April 19, 2020

Bank Nifty opened gap up at 20394, declined to registered day’s low 19729 but bounced back again by more than 1000 points to register day’s high 20866 and finally closed 1281 points up at 20681.

Friday, Bank Nifty was expected to decline towards 18686-17143 in coming days without breaking high above 20324. Revision in pattern was needed if Bank Nifty breaks above 20324.

Bank Nifty opened above 20324 and registers high 20447 at very opening, so levels mentioned in report were not valid anymore. After registering high 20447, 20035-19780 was fresh support and bounce towards 20500-21000 was expected and same was updated through whatsapp. Bank Nifty took support at 19780 and bounced back till 20866. Now, let’s have a fresh look at 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 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 after all time high 32613 which I am analyzing independently.

It seems wave [1] completed from 32613-30209, 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). 23%-38%-61% retracement of whole wave from 32613-16791 is placed at 20009-22417-26311. So, 20009-22417-26311 are short term resistance levels. Bank Nifty already achieved 21462.

The pattern of bounce after 16116 looks corrective till now and is not showing any strength, so there is possibility for one more low below 16116 in coming days/weeks.

Now, we need to analyze the bounce started from low 16116 separately on lowest possible time frame to calculate very short term outlook.

Elliott wave counts of Bank Nifty on 30 Minute chart

Elliott wave counts of Bank Nifty on 30 Minute chart

This is 30 minutes time bar chart of Bank Nifty covering bounce started from low 16116 which I am analyzing independently.

It seems wave completed from 16116-21462 may be wave [A or 1] and wave [B or 2] may be in progress.

Within wave [B or 2], it seems wave (a or 1) may be completed at 17143 and wave (b or 2) may be completed at 20866 or still in progress as Double Zigzag correction.

Within wave (b or 2), first (abc) cycle may be completed from 17143-20324, wave (x) may be completed from 20324-18686 and 2nd (abc) cycle may be in progress.

Within 2nd (abc) cycle, it seems wave (a) may be completed at 19986, wave (b) may be completed at 18703 as Irregular correction and wave (c) may be completed at 20866 or still in progress.

23%-38% retracement of progress of wave (c) of 2nd (abc) cycle is placed at 20355-20039 which is immediate support range and 20039 is immediate downside breakeven point. Bank Nifty is in positive zone as long as trading above 20039.

But Bank Nifty if breaks and stay below immediate downside breakeven point 20039 for more than 15 minutes can result in further decline towards 18703-17143.

Overall, Bank Nifty is in positive zone as long as trading above 20039 but Bank Nifty if breaks and stay below immediate downside breakeven point 20039 for more than 15 minutes can result in further decline towards 18703-17143.

Conclusion and Outlook:-

For short/medium term, 20009-22417-26311 can act as short term resistance levels and Bank Nifty already entered in resistance range 20009-22417 after registering high 21462. The pattern of bounce after 16116 looks corrective till now and is not showing any strength, so there is possibility for one more low below 16116 in coming days/weeks.

Very short term/Intraday, 20355-20039 is immediate support range and 20039 is immediate downside breakeven point. Bank Nifty is in positive zone as long as trading above 20039.

But Bank Nifty if breaks and stay below immediate downside breakeven point 20039 for more than 15 minutes can result in further decline towards 18703-17143.

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

Get Bank Nifty and Bank Nifty Daily Analysis Reports and Live Updates 0n WhatsApp for Free.

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Trading Strategy:

Bank Nifty if trade/stay below 20039 for 15 minutes then later bounce towards 20039-20355 can be used to sell Bank Nifty using stoploss some point above 20355 expecting decline towards 18703-17143 in coming days/sessions.

Those who want to buy or holding any longs can use stoploss some points below 20039. Buying or holding longs overnight is risky now onward, only intraday buying can be done for small swings.

Any other swing trading opportunity will be updated during market hours if we identify any.

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.

Get Bank Nifty and Bank Nifty Daily Analysis Reports and Live Updates 0n WhatsApp for Free.

Click Here to know more.

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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