Nifty Elliott Wave Update

MARKET UPDATE: 31 JAN 2021

NIFTY
TIME	TREND	UP LEVEL	DOWN LEVEL
Medium term trend	Up	15000	13131

Explanatory Note: Wave 4 forms ahead of budget, wave 5 up next.

Nifty pushed the weekly momentum into sell mode but we remain above the 20-week average at 12856 and the swing low of 13131 made in December. The upper band is at 15000. Prices gave up near the top end of the channel and the lower end is at 13180. The weekly RSI dropped from 79 to 63 but no negative divergence exists.

Bank Nifty was down for a second week and the first swing low and support is near 28976. Wave 4 down often ends near or before the wave IV low of the previous advance. The weekly momentum is in sell mode but we remain above averages. The reverse channel drawn is even lower. So unless we complete wave 5 the overall trend is still up. Is wave 4 over or will it form a triangle taking more time remains a question for the market to answer? The upper end of the channel is at 34586. The RSI is down to 63 from 74 here as well and no negative divergence in RSI.