Yes, We expect Bank Nifty to touch nearly 40000 levels over the period of next 5 years.
Now this figure might look irrational at the face of it but we have history in our favor that shows much better returns over the period of past 30 years. Sensex base value was mere 100 when it was launched and touched near 21000 level in 2008 in just 3 decades an increase of nearly 210 times. In the financial world one should have an open mind to look beyond bias with complete objectivity and belief in the techniques that has proven track record in the past.
Elliott wave is one of the advance methods of technical analysis that we exhaustively use to predict the future trend and along with it we do combined Time cycles that provides us rough estimate on the probable time frame by when we can expect the levels to reach. Advanced Elliott wave concepts also emphasis a lot on the use of Channels, without which the study would be incomplete.
Let us see a few of the studies we have applied on Bank Nifty that was published in our Monthly research report “The Financial Waves monthly update”
Figure 5: Bank Nifty monthly chart
(a few counts are removed from above charts)
Bank Nifty detailed analysis:
As shown on Bank Nifty monthly chart, in the month of May 2014 Bank Nifty took out the crucial hurdle of 13350 and entered into unchartered territory and after that prices continued the upward journey which is increasing the odds that Bank Nifty has completed wave C of wave [Z] of wave IV. This is indicating that Bank Nifty has already started the Bull trend in the form of wave V. However, similar to that of Nifty, post October we are expecting this index to …………..
Time Cycle of 33 months is currently due which is bottoming cycle. Already Bank Nifty has rallied 60% from the lows or from where wave IV has completed nearly 10000 to current levels of 16000.Hence we cannot rule out the possibility of correction which might pause the current up move but bigger trend has now turned to positive.
In short, we have forecasted the probable path of Bank Nifty in monthly chart. On downside12500 – 13000 is the strong support zone where 300 periods moving average is also placed. So over short term as indicated by ratio chart outperformance of Bank Nifty can continue. PostOctober 2014, ……….
To know more about the medium to long term direction of Bank Nifty along with Nifty and ratio analysis subscribe to “The Financial Waves Monthly update” by visiting http://www.wavesstrategy.com/index.php/store.html
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