Bank Nifty Trading Strategy for 1th Sep'2020

31 thg 8, 2020

#banknifty OI up by 2.44% and price down by 3.14 % shows the almost neutral position on FNO

My view is LONG on the index, contrary to the majority of analysts.

What I mentioned on Saturday:- "You still have 1000 to 1500 more point rally to grab, but we have stretched too far, we need to cool down to 23,500-23,600 range to add fresh long"

The index cooled down as expected, made low of 23,385.

We still have the upside target of 25,827, so still have 500 to 1000 points on the upside.

Three targets are 24,526 / 25,232 / 25,827

All SL for long is revised to 23,090.

#banknifty has given breakout above 23,220 after 2 months of consolidation (21,027 - 23,211 i.e 2,184 points range).

This gives an upside target of 25,395 and we have a high of 25,232 (again achieved)

Upside target's opened are 23,517 (completed)/ 24,364-24,524-24-556(completed) / 25,395-25,670-25,923 / 26,311 as long as 23,517 holds.

GAP 25,923 - 25,670, 253 point gap in March, as a normal rule market always returns to fill up the gap.

This gap will also act as resistance.

Fibonachi Analysis :- 32,613 - 16,116

23.6% 20,009 Done
38.2% 22,418 Done
50.0% 24,364 Done
61.8% 26,311 Pending

Strong Resistance:- 24,364 - 24,556
Strong Resistance:- 25,670 - 25,923

Strong Support:- 23,200

Elliot Wave:-

Wave 3 can be 161.8% to 261.8% or 461.8%

Wave 1 :- 21,403 - 22,410
Wave 2 :- 22,410 - 21,886
Wave 3 :- 21,886 - 25,232 (332% of wave 1) - Completed
Wave 4 :- 25,232 - 23,385 (44.7% of Wave 3) - 1847 point (we assume it's completed, if not can till 23,165.)
50% 23,559 Done
61.8% 23,164 (Might or might not be)
Wave 5 :- 23,385 - 24,526 / 25,232 / 25,827

*Wave 5 is typically 61.8%, 100%, or 123.6% of wave 4

Decision zone:- 23,517 - 23,684


Note:- Trade the levels, levels are staircase, you take small steps to go ahead.

Trade what you see, not what you feel, trading is all about making money and nothing else.