Nifty Elliott Wave Update
5 Jul 2020 ● 08:35 AM
MARKET UPDATE: 6 JUL 2020
Explanatory Note : The third wave is subdividing opening up to an extended move.
The 40 week average was at 10490 and we closed above it. So one more hurdle crossed along with the 61.8% mark at 10550. So till we get any loss of momentum weekly charts will not signal a reversal easy. Wave counts remain bullish for slow and steady extentions. Weekly charts wave III of 3 points to 11200 and the upper Bollinger band is at 11660. The 20dma pivot is at 9773. So while some short term concerns may develop as discussed in a separate note, the medium term higher tops and bottoms and the nifty discount in the futures markets are indicative of the idea that declines will get bought into.
Bank nifty completed its momentum cycle as the momentum crossed the zero line so that reason for being bullish is over. We closed above the 20dma at 21677 as the positive for the week. This should now become the support on a weekly closing basis and we should attempt to move higher toward the 40wema [green indicator] at 24494. Bank nifty faces an immediate hurdle at 22480, the 38.2% retracement mark. Yes in terms of retracement bank nifty lags far behind nifty. Above this level the 24494 level coincides with the 50% retracement mark.