Banknifty Update for May 12, 2020

Banknifty opened gap up and again reversed from Banknifty major Gann No 19700 and gave excellent move towards another major Gann No 19000, making low of 18900.90 and closed @ 18950, below Gann No 19000. It also broke the previous pivot low made on May 6 @ 18941.

From low of Mar 23, Banknifty moved in A-B-C corrective wave, making top @ 21967. In this A-B-C correction wave "C' formed the "Ending Diagonal"(ED) pattern which is a 5-wave corrective pattern where all 5-waves internally make a-b-c pattern.

The ED of wave C took 16 trading days to complete. it started on Apr-3(@17143.20) and completed on Apr-30(@ 21967). As per basic rules, a complete retracement of ED should take a half time it made to complete. So we should see 17200 levels in 8-9 trading sessions from the top of Apr-30. So, May-13 or May-14 should achieve 17200 levels.

The down wave started after completion of A-B-C correction @ 21967 and wave 1 is completed @ 18941. It seems wave 2 completed @ 199969.9. If we project wave 3 from wave 2 we get 100% projection @ 16943, 123.6% @ 16229 and 138.2% @ 15787.

ED target is @ 17143 and Min 100% projection for wave 3 is @ 16943. So we can expect target range 17200-16950.

Comments

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