Nifty Bank Elliott Wave Analysis
Nifty Bank daily chart
Nifty Bank hourly chart
From the above daily chart, the index which was moving in a rising channel has given a bearish break by trading below the support. However, there are high chances that prices might test the resistance which was earlier acting as a support (role reversal). At present, prices are moving down in a small falling channel and it is making an attempt to bounce from its support. RSI is also turning from down to up but it is below the center line.
In hourly chart, prices are moving in a falling channel by forming lower highs and lower lows, indicating that the trend (short term) is negative. Currently prices are at crucial juncture as it might bounce from the support of the falling channel and can move back up towards its resistance. It has also completed inverse head and shoulder pattern which is bullish reversal pattern.
From Waves perspective, the Nifty Bank is moving either in double correction (a-b-c-x-a-b-c) or only a correction (a-b-c). In the former scenario, there are high chances that wave x will form which can surge till 34800-35000 levels. In the later scenario, it will surpass the resistance of 35000. In both the cases it will climb up from current levels as per wave theory.
The summation is Nifty Bank is expected to climb till 34800-35000 levels over short term. It is important that the level of 32700(closing basis) is intact on the downside for the above target to achieve.
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