Nifty Elliott Wave Update
16 Aug 2020 ● 08:31 AM
MARKET UPDATE: 16 AUG 2020
Explanatory Note : Wave V of 3 is about to start, midcaps leading
Nifty closed down for the week and that appears abrupt as wave v up was to start. The possible explanation is that wave iv is developing as a triangle and may consolidate a little more to complete a-b-c-d-e inside the triangle before breaking out above 11400 toward the upper Bollinger band near 11773. Wave V of 3 may eventually go above 12000.
Bank nifty needs to get past 23688 [upper band] for a larger rally to unfold and un the lower side the 20 week at 20615 is the key support. Short term there is no clear trend. As long as 21031 holds wave 2 is over and wave 3 up is in early stages of taking off. 3=1 is at 28500 and banks could outperform short term if this happens. This week sugar stocks also started a rally so should do well. Pharma too is in a trend. Metals are mixed and could go both ways for a while. Last two times ahead of expiry metals OI causes bans in F&O, so the stocks tend to come under pressure. Watch the ban list for that.