Nifty Elliott Wave Update

MARKET UPDATE: 09 AUG 2020

NIFTY
TIME	TREND	UP LEVEL	DOWN LEVEL
Medium term trend	Up	11654-12246	10882

Explanatory Note : Wave V of 3 is about to start, midcaps leading

One week down and we are positive again this week. The same was true for wave II of 3, Wave IV ended in one week as well. Wave V may go on for 4 weeks unless it is fast to achieve its objectives. The weekly Bollinger bands are expanding now and the top end is at 11654 for this week. The 40week average is at 10612 but this weeks low at 10882 will become the main pivot and support from here on as wave V of 3 develops. Wave 4 corrections also sometimes end at this level so it will remain an important support going forward. The next major swing high is at 12246 seen in mid FEB.

On weekly charts bank nifty closed the week positive. I am slowly moving to the weekly wav count that shows wave 1 as a leading diagonal and wave 2 as a small correction within 38.2% retracement. Bank nifty is lagging far behind the nifty so in wave 3 it may play catch up. It needs to break past the tightening Bollinger bands on weekly charts and push them to expand. So the upper band at 23574 is the key resistance level just below the 40dema at 23957. Getting past this cluster would be further bullish for bank nifty and would push the bands to start expanding as it should in a trend. This weeks low at 21031 may become an important pivot.