Banknifty Update May-20, 2020

In yesterday's post, I mentioned that Banknifty may remain rangebound in 18000--17200. Today it opened Gap up @ 18037, immediately come down to 17600 levels, our Gann No and again gave good up-move making day high @ 18175 and then again back to 17600, broke it, made low of 17390. It eventually closed @ 17486. So it behaved exactly in the range as we expected, giving good opportunities for trading.

On the daily chart, MACD is clearly showing the breakdown. In this entire retracement upmove, MACD did not cross the "0" level and now gave bearish crossover. Similarly, RSI was rangebound in the 40-50 zone during retracement move. Now it also broke 40 levels.

Breaking 17200 levels will give us a target of 15000 levels in the coming weeks, near our next important Gann Number for Banknifty, 15100. In the Month of May, Banknifty opened near Gann Number 20400, achieved the next major Gann Number level 17600. So now the next target as per this system is 15100. So let's wait and watch.

The hourly chart is showing that today's price reversed from the Neckline zone of the H&S pattern. Also observe "Bullish Divergence" in MACD Histogram (shown in line form), which suggests possible upmove on the hourly time frame. I am expecting a rangebound move for the next 1-2 days within the channel(brown color) shown.

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DAX analysis for a client

DAX Index Analysis For upto Feb 29, 2020 : Daily chart shows prices are at Strong resistance zone at upper trend line (red color). On Friday (Feb 14, 2020) it formed a Doji candle that is a sign of reversal as it formed at top and at resistance zone. So correction or reversal from this level is very likely. If prices cross above 13950 and sustains above then Breakout on upside is possible. But this looks very unlikely for at least few days as RSI indicator is also at resistance. At present it is in no trade zone. Best scenario is to wait for price to break 13600. Trade opportunities: Long Trade: Above 13950 for target of 14300. Short Trade: Below 13600 for target of 13450/13400 and below 13400 for target of 13100/13000 DAX Analysis for Swing Trade on Weekly Charts: Weekly chart shows price is at multiple channels and trend lines resistance. Trade opportunities: For few weeks or months holding Long Trade: Above 13950 for target of 14300/14800 and brea

Bullish Bets for coming week (Apr 13-17)

I have summarised my analysis in the following table. These are bullish stocks. Please do your own analysis and these are not recommendations but only for learning purposes Stock CMP Tgt 1 Tgt 2 Tgt 3 ITC 185.25 203 210 VEDL 76.8 92 96 NCC 20.15 23 26 28 RBL 120.85 134 140 SUNTV 338.3 360 365 390 CANBK 91.5 111 118 121 SBIN 187.75 194 202 211 RECLTD 89 101 106 INDIGO 1041.95 1100 1140 1160 HINDPETRO 207.85 218 223 227 Hindalco 107.55 113 127 134 CHOLAFIN 171.75 185 204 225 BHARATFORG 245.55 277 288 299 SRTRANSFIN 675.95 730 785 840 .

Bank Nifty Bigger Time Frame Analysis

I have posted following weekly chart of Bank Nifty in my Dec 15 post. This chart shows similarity in patterns. The pattern started in Aug 2013 and completed in Oct 2016 as shown below: This is "Extracting Triangle Pattern" as per Advanced Elliott Wave (Neo Wave). Ongoing pattern looks similar to Extracting Triangle Pattern and as per this pattern wave D seems to be in progress. After completion of wave D, index will move towards upward channel line(RED) in wave E. Once the pattern gets completed, we should expect index to go below wave D. I am just aware about Neo wave patterns but do not have knowledge about its calculations/counts. In Extracting Triangle pattern, each successive wave in the direction of trend contracts while corrective waves expand (wave A< wave C < wave E, wave D > wave B) It looks similar to Head & Shoulder pattern So possibility of Down move is quite high post Jan 2017.

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