Fresh Elliott Wave Outlook of Bank Nifty for 24 March 2020 Onward

| March 23, 2020

Bank Nifty opened huge gap down of 2006 points at 18311, bounced to register day’s high 18895 sharply after opening but declined back again by more than 2000 points to register day’s fresh low 16791 and finally closed 3399 points down at 16917.

Yesterday, Bank Nifty was in negative zone as long as trading below 21035 and further decline towards 19265-18362-16712 was possible whereas 20194-20473 was intraday/immediate resistance range.

Bank Nifty opened huge gap down at 18311, so intraday levels were changed. Later, 18471-18939 was fresh immediate resistance range and 18939 was fresh upside breakeven point after registering low 17715. Bank Nifty declined further till 16791 without entering in resistance. Now, let’s have 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 18675 or still in progress.

Wave [5] achieved minimum 38%-61% projection and next 100% projection is placed at 14408 which is a rare case.

23%-38%-61% retracement of whole wave from 32613-16791 is placed at 20524-22835-26568. So, 20524-22835-26568 are short term resistance levels.

Now, we need to analyze the decline started from high 25670 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 minutes time bar chart of Bank Nifty covering decline started from 25670 which I am expecting start of wave [5] on previous 05 hourly chart.

It seems wave (i) may be completed at 22398, wave (ii) may be completed at 23397, wave (iii) may be completed at 18675, wave (iv) may be completed at 21035 and wave (v) may be in progress.

Wave (v) achieved 38% projection whereas 61%-100% projection is placed at 16712-14040 which may or may not be achieved.

Within wave (v), it seems wave (a or 1) may be completed at 19265, wave (b or 2) may be completed at 20924 and wave (c or 3) may be in progress.

23%-38% retracement of progress of wave (c or 3) is placed at 17766-18379 which is immediate resistance range and 18379 is immediate upside breakeven point.

Overall, Bank Nifty is in negative zone as long as trading below 18379 and can decline further towards 16712-14040. But Bank Nifty if breaks and stay above 18379 for more than 15 minutes can result in further bounce towards short term resistance 20524-22835.

Conclusion and Outlook:-

For short/medium term, 20524-22835-26568 can act as short term resistance levels and further outlook can be calculated after reaching these resistance levels step by step. On downside, 14408-14040 is major support and Bank Nifty can bounce towards resistance 20524-22835 before breaking below this support.

Very Short term/Intraday, 17766-18379 is immediate resistance range and 18379 is immediate upside breakeven point. Bank Nifty is in negative zone as long as trading below 18379 and can decline further towards 16712-14408.

But Bank Nifty if breaks and stay above 18379 for more than 15 minutes can result in further bounce towards short term resistance 20524-22835.

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Trading Strategy:

Bank Nifty is still volatile and fear in market is still there. We personally like to trade safe and doing hedged trades only. So, we are suggesting most probable and low risk trading strategies to give idea, traders who want to take risk or can manage trades can use these levels and conditions to plan their own trade.

Positional longs can be initiated or hedged buying can be done in 16712-14408 range using stoploss below 14040 expecting bounce of 4000-6000 points. Range is very big and risk reward will be good if get Bank Nifty near 14408.

For Intraday,

1. Bank Nifty if breaks and stay above 18379 for more than 15 minutes then later decline towards 18379-17766 can be used to buy Bank Nifty with stoploss some points below 17766 expecting bounce towards 20524-22835. Resistance 18379-17766 will change if Bank Nifty registers fresh low below 16791.

2. Those who want to sell or holding shorts can use stoploss above 18379 on 15 minutes closing basis. Bank Nifty can decline further towards 16712-14408 if failed to stay above 18379 for more than 15 minutes.

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.

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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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