Nifty Elliott Wave Update
7 Feb 2021 ● 09:34 AM
MARKET UPDATE: 07 FEB 2021
Explanatory Note: Wave 5 or 3 up has started. Turn bullish faster than you turn bearish is the trick in a bull market.
Are we at the end of wave 5 or going to extend higher in 3 of 3. Both are open but we should soon get more confirmation. The upper band is at 15263 and the channel line can go as far as 15400 depending on how long it takes. The weekly momentum indicator has not gone back to a buy and we do not have a negative RSI divergence either. A negative divergence needs a negative weekly closing too. The blue markings show the alternate wave count that is outrageously bullish. If the move up is wave 5 then it can end near 15200 [5=1] but if it is wave 3 of 3 then it's far from over. The near-term risk is only that of rotation out of banks into metals PSU or pharma sectors.
The weekly momentum of bank nifty crossed over to the buy-side as it was the biggest mover for the week. Wave 5 of the move up from May started and 5=1 goes to 44100. The first resistance is near 38200 near the top end of the rising channel. Bank nifty may complete wave i of 5 and dip in wave ii of 5 at some point of time.