Skip to main content

Bank Nifty for Week Starting Jan 30, 2017

For Last 2-3 weeks Bank Nifty shown very volatile moves. It moved up very fast from 18300 to 19250 level, corrected sharply to 18700 level and again sharply moved up to 19700. Let us analyze why it is moving in this manner!
The down move from 20300 terminated in ED (ED started from 19150-19200 level). the wave 5 was very short and hence I was not confident whether it was really ED? But post moves and specially the speed at which minor wave b & c of Major wave A completed confirms the same. Also minor wave a terminated where ED started. I mentioned about this ED might have started at 19130 level(as waves are very complex and not easy to identify) in EOD Dec 16 update.

Here I am posting Post ED moves analysis link:

We normally see that time taken by minor wave b is much less than impulsive minor wave a and minor impulsive wave c takes almost equal or less time than minor wave b. Also ratios exhibited by minor waves of A may be again repeated by Major waves of ABC pattern.

Wave    Price  Ratio(%)  Time(Days)    Ratio(%)  
A          
a 1445        12      
b 554      38.34 4     33.33    b/a
c 1073     74.26 4    33.33    c/a

Now wave A may still in progress and may complete around 19850/19950 zone. So as per Post ED move analysis, post completion of wave A, Index should fall sharply to 19000 level in next 2-3 days and complete corrective wave B in next 6-7 days. Post completion wave C should move up to target of 20400. 

Gann Levels

Also observe Index moved sharply from 17600 to 18300, 18300 to 19000 and again from 19000 to 19700. This is because 17600/18300/19000/19700 are 3 digit Gann nos. And sharp moves are due to Post ED waves. So break of 19700 tomorrow we may quickly see index at 19000 and then again breaking 19700 from down  index may reach sharply to 20400(3 digit Gann No).

Gann Time Analysis:

Jan 29 is 144th calendar day from top of Sep 7, 2016(Jan 29 is Sunday, so we consider Jan 30) and Jan 31 is 90th trading day from Top of Sep 22, 2016. So we may see a Minor Top on Jan 30/31 and may be some volatile movement in Bank Index.

Comments

Popular posts from this blog

Bank Nifty for Week Starting Jan 16, 2017

Last week Bank Nifty made big up move of 650 points. High made is 18966. It looks like it is ready for further up move. On hourly chart Middle BB line(RED color) is providing support and Index may again move up towards upper line of  Blue Channel.  The Best trading strategy is now to go Long when Index is bouncing from Middle BB line and Exit when it is near upper line of Blue Channel. Hourly RSI shows Resistance at 85 level and Support at 59 level. So Blue channel along with RSI levels are good indicators for trade.  It is not good idea to go short as Up Momentum is strong. If Index breaks Middle BB line then only short positions should be taken. If Bank Nifty breaks 18850/18800 then we may see it reach quickly to 18650/18600. Also it may break RSI support level of 59 for major correction. We may see Index moving along Upper BB line (Blue color) on Daily chart. Index may face resistance at 19150/19200 level. If it crosses 19200 it can reach to 19500/197000. Daily RSI is

Bank Nifty EOD Feb 7 Update!

Bank Nifty is in consolidation/correction mode. Today it moved in a very narrow range and it seems that it is under time correction before a BIG move. It is awaiting RBI monetary policy decision due on Feb 8 and bank Nifty may make Big move on Feb 9 in either direction depending on market's reaction to RBI decision. Bank Nifty 15 min chart shows wave a and wave b completed and wave c is in progress. It may take triangle pattern of correction as uncertainty of event outcome is playing out. It may correct to 20250/20030 levels.

Hindalco - On the Verge of Break-Down?

Hindalco Daily chart is posted below: Daily chart shows prices are facing resistance at Gann level 183 and now prices are near lower band of Bollinger Bands(BB) that are expanding. Hence, a big fall is expected in next 2-3 trading sessions with target of next Gann level 157. Daily RSI is also broke 50 level coming from upside overbought  70 level that signals further fall in coming days.