Elliott Wave Outlook and Trading Strategy of Bank Nifty for 07 July 2017 Onward

| July 7, 2017 | 0 Comments

Bank Nifty opened higher at 23399 and declined to registers day’s low 23369 but bounced back again by more than 150 points to register day’s high 23540 and finally closed 114 points up at 23466.

Yesterday, bounce towards 23498-23552-23703 was expected and Bank Nifty 06 July 23100 Call bought near 23214 on Tuesday was suggested to hold with stoploss 23306 for minimum targets 23498-23552. Bank Nifty bounced till 23540 and finally closed at 23466. Bank Nifty 06 July 23100 Call gave profit of more than 200 point from entry point. Now, we need to analyze latest chart to calculate next move.

This report is covering Bank Nifty move after 26 Feb 2016 low 13407 and earlier wave counts are explained in my previous analysis report Bank Nifty Elliott Wave Analysis and Outlook for 29 May 2017 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 bounce from 17606 to 23897. This is the same chart with explanation which I posted in my yesterday’s report because there is no change in wave counts on this chart.

I have not marked any wave count on this chart because bounce is very steep without any reasonable correction. I am showing this chart just to calculate Fibonacci retracements.

Normal 23%-38% retracement of this whole steep bounce (starts from 17606-23897) is placed at 22412-21493 which is the expected targets range on downside if any bigger correction is started.

Now, we need to analyze decline from high 23897 on separate lowest possible time frame chart to identify its pattern.

Elliott wave counts of Bank Nifty on 15 Min chart

                   Elliott wave counts of Bank Nifty on 15 Min chart

This is 15 min time bar chart of Bank Nifty covering move from all time high 23897.

Same I explained in my previous report, it seems an Impulse completed from 23897-22995 as marked on the chart. And this downward impulse started from high can be wave (A) or (1).

Normal 38%-61%-78% Retracement of this wave (A or 1) is placed at 23339-23552-23703 which is the expected retracement levels for wave (B or 2) whereas 38% is already achieved.
Within wave (B or 2), It seems wave completed from 22995-23330 may be wave (a), wave completed from 23330-23163 may be wave (b) as an irregular correction and wave (c) may be in progress from 23163. Probable wave counts of wave (c) are marked on chart.

Conclusion and Outlook:

Wave counts on charts indicating that Bank Nifty still has possibility to bounce towards 23552-23703 range to complete wave (B or 2) followed by decline for 22995 and below to complete wave (C or 3).

Normal 23%-38% retracement for wave starts from 23163-23540 is placed at 23451-23395 from where Bank Nifty can bounce further towards 23552-23703 range in coming days.

Trading Strategy:

According to conditions on chart, the safe and low trading strategy would be:

1. Buying 23700 13 July Put if Bank Nifty bounce towards 23552-23703 with stop loss of 23723 expecting short term targets below 22995.

2. Wait for any clear pattern to form to initiate trade if Bank Nifty declines without achieving 23552.


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