Bank Nifty forming higher highs and higher lows!

Following was published on 2nd Jan morning report before equity markets opened by Waves Strategy Advisors (www.wavesstrategy.com)

Bank Nifty Weekly chart:

           Bank Nifty Daily chart:

          

            Wave Analysis:

          

Bank Nifty moved parallel with Nifty, followed all the Elliott wave rules and continued the impulsive move in an intermediate wave C. From last four weeks prices have been consolidating between the range of 12200-12600 levels. But in the previous trading session prices have breached 12600 levels and made an intraday high of 12775 levels. This indicates positivity in this sector. 

As per wave perspective, the current thrust is intermediate wave C. Previous day sharp rally on upside suggests that uptrend is still intact and prices have potential to move higher in the form of minor wave v of C. Also important thing to observe in this wave C is that wave iii has been slightly more than that of wave 1 pricewise. This gives potential for wave v to travel more than wave i or iii. Since as per the rule wave iii cannot be the shortest and wave iii is slightly bigger than wave i even if only by few points.

Also as seen in the weekly chart there is no loss of momentum and prices should reach atleast near the previous high marked as wave A which is at 13100 levels.

In short, we are firmly bullish on Bank Nifty. 12200 will act as a strong support followed by 12000 level. As long as, 12200 is intact on downside our bias is positive over short term. Any pullback from the current level will provide the bullish opportunity for 13000/13100 levels.