Nifty Elliott Wave Update

MARKET UPDATE: 08 JUN 2020

NIFTY
TIME	TREND	UP LEVEL	DOWN LEVEL
Medium term trend	Up	10430-10550	8909

Explanatory Note : A third wave higher has started the size can vary depending on the situation.

Wave c or 3 up has started, and we closed above the 20 week average at 10112 this week. The 40 week average is at 10529 and 61.8% retracement mark is at 10550. That cluster near 10550 is the next resistance that we will now attempt to cross. Most world markets have done so. Indication is that it means that this is not a bear market rally and something else. If Nifty follows the same path we go to wave 3=1 near 11500 next. Weekly momentum remains in buy mode and is not yet back above zero. This weeks up move was on the back of volume, not what you get at the end of a counter trend bounce. So it remains a bullish indication

 

Bank nifty lots of catch up to do on the weekly momentum indicator, still below the 20dma and the April high. So the upside opportunity should also be bigger here in % terms.