Nifty Elliott Wave Update
12 Jul 2020 ● 10:49 AM
MARKET UPDATE: 13 JUL 2020
Explanatory Note : Wave II of 3 maybe forming, III of 3 started once the high is surpassed.
Nifty closed the 4th week higher and 7th week in wave 3. This weeks candle is a doji showing little price advance. Maybe some loss of momentum. The weekly upper Bollinger band has come down to 11345 as the next major resistance. Once 10847 is surpassed we can head there. The doji suggests that fresh momentum needs to build up otherwise markets can take a breather. The weekly averages are at 10507 and then down to 9707. Nifty is at the 66% retracements mark near 10800, an important hurdle. The key is going to be the strength or weakness in banking stocks. On the other hand stay alert for a move up in the metal index if it breaks out as discussed in a separate note.
Bank nifty also formed a doji losing momentum. It continues to struggle at the 38.2% retracement mark near 22475. It is not clear in the short term if wave 3 up started so a move above the doji high of 23080 is needed for prices to extend higher toward 24392, the 40wema. Else we may dip first to the support at 19507.