Bank Nifty ( Elliott Wave): Alternate count triangle unfolded above 50939
Follow up on last Idea - Bank Nifty Reversal at 51404?
Critical level - 50939 intact
Our last suggestion to sell BankNifty below 51404 was spot on, as we witnessed a 200-250 point drop during the session. However, the decline didn’t seem convincing from the highs of 51404, suggesting that new highs could still be possible as long as 50939, the critical level, remains intact.
Recent developments
On 29th August 2024, the index opened near 51000, reaching a precise low of 51028, which we marked as Wave C. Holding 50939 critical level, we saw one push towards recent highs, reaching 51369, which we marked as Wave D. Later, Wave-E unfolded as sharp leg but again holding critical level 50939.
9:26 am India Time / 29th Aug 2024
Pushing Upside in Wave-D
2:25 pm India Time / 29th Aug 2024
Wave-E completed close to 50939
10:20 pm India Time / 29th Aug 2024
Heading for Final Leg Upside Above 51404
What to expect next?
- Holding 50939: If BankNifty manages to hold above 50939, expect the bulls to regain control, potentially driving the index beyond 51404, with new highs on the horizon.
- Breaking 50939: Should the index fail to sustain above 50939, traders should brace for further downside. This break could signal the end of the current bullish wave structure which started from the lows of 49659 / 49654 -double bottoms between 6th & 14th Aug 2024 respectively.
Key levels to watch
- Immediate Support Test: Monitor the behavior around 50939 closely in the upcoming sessions.
- Potential Upside: If 50939 holds, look for upside momentum as we approach the first week of September 2024.
This is a pivotal moment for BankNifty. Stay alert and be ready to adjust your positions based on the critical 50939 level.
Author
Abhishek H. Singh
WaveTalks
Abhishek is a seasoned financial analyst with over a decade of experience specializing in Elliott Wave Theory.
