Nifty Elliott Wave Update

MARKET UPDATE: 24 AUG 2020

NIFTY
TIME	TREND	UP LEVEL	DOWN LEVEL
Medium term trend	Up	11796	10882

Explanatory Note : Wave V of 3 still to take off

What will drive a new rally in wave V of 3 higher? Unless you get RIL to kick off again and banks to join the move the market may appear lethargic. Midcaps have taken most of the burden of lifting prices this month but that is not helping Nifty. Nifty made a new closing high but is not much higher than it was at the start of the month. So did wave V start of are we in wave IV remains in question. We are making higher highs and lows so the trend is up. This weeks low of 11144 maybe a new higher pivot. We can stretch to the upper Bollinger band at 11796 once 11500 is crossed. Momentum and volumes continue to be good. Even though daily volumes appear lower than 3 months ago, they are much higher than they were in May 2019 around the election. The weekly charts volume at the bottom is elevated. Breadth has also picked up again after the decline in June. Market internatls are still strong.

Bank nifty closed the week positive and the weekly momentum is still in buy mode. The bank index is gearing up to attempt a breakout above 23600 the upper Bollinger band. The 20 week avearage at 20867 should hold on a weekly closing basis. This will keep the bias and trend positive for bank overall.