Nifty Elliott Wave Update
13 Sep 2020 ● 02:28 PM
MARKET UPDATE: 14 SEP 2020
Explanatory Note : Wave V of 3 still to take off
Nifty closed positive for the week. The nextg move should get past the 11800 mark now and the upper Band has moved up to 12131. So we may attempt to touch the 12131 mark in the next rally as weekly momentum remains in buy mode. Weekly momentum is also much above the range it was stuck in for the lst few years as shown by the grey trendline. This breakout means that the current move is not part of the previous bear phase. I have changed the wave count to wave 4 complete even though wave 4 was only one week long and wave 2 was 3 weeks, based on the cycles on the daily chart. Nifty made a higher bottom at 11185 from 11111 earlier. The higher lows maintain a positive trend based on Dow theory.
The weekly momentum stopped at the trendline of the last two highs seen in momentum. But if Nifty went past this line I would anticipate that bank nifty will eventually do so. Staying above the 20dma at 21359 and the previous swing low of 21403 the trend is up. The short term wave count has options open. On weekly charts I am keeping an alternate wave count in line with what we were doing till last wek so it is different from what I have done on the daily charts. We will finalise one later. Bank nifty was down for the week and we need a positive week to further confirm the trend is still up. Once done we should go back to above the 25232 high made two weeks ago.