Wednesday, May 28, 2014

Bank Nifty near important juncture and turning points!

Bank Nifty has shown strong outperformance in recent rally. The below chart shows Elliott wave counts on daily and 60 mins chart.

Bank Nifty Daily chart: 

Bank Nifty 60 mins chart:

           Elliott Wave Analysis:

Bank Nifty has shown strong performance in recent rally of Indian market. On the election result day, prices made a high at 15742 and since then it is confined within the tight range.

As shown in Daily chart, same as Nifty, the rally started from the level of 10000 looks corrective in nature. As per bigger degree wave counts, in the month of September 2013, prices completed intermediate wave A at the level of 8400 and since then it is moving higher in form of intermediate wave B which is in double correction pattern (a-b-c-x-a-b-c).Internal structure of the same suggest that minor wave b of second standard correction completed at 13000 and ongoing move is in form of minor wave c. This wave c is struggling exactly near the level where 100 % of wave a is placed. This is increasing the odd for corrective up move rather than impulsive.

As shown in 60 mins chart, minute wave iii of minor wave c completed at 15750 levels and since then range bound movement is ongoing due to which it is not clear whether minute wave v truncated at 15550 or still wave iv is ongoing. Now, 14800 and 15750 are two important levels which will decide the next trend.

In short, any sharp move below 14800 will suggest that downside trend has started and move towards 14000 can be possible where next support is placed. Further move below this level over medium term will suggest that entire upside correction which started from September 2013, in form of intermediate wave B completed and next trend on downside has started in the form of intermediate wave C. However, any move above 15750 will suggest wave v is still ongoing and this rally can extend further.

Today's morning research report "The Financial Waves short term update" covered views on Nifty, NSE Midcap and BHEL in addition to above Bank Nifty analysis. Subscribe to this research and see yourself why Indian markets are nearing important turning points. Visit

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