Nifty Elliott Wave Update

MARKET UPDATE: 20 JUL 2020

NIFTY
TIME	TREND	UP LEVEL	DOWN LEVEL
Medium term trend	Up	11280	10504

Explanatory Note : Wave 3 continues to extend.

Wave III of 3 is going on and the Upper Bollinger band at 11280 is the next resistance level whereas the 40 week average at 10504 is the immediate support. The weekly candle is a hammer, after a rally a hammer can often be considered a hanging man occurs at the end but a hammer after a congestion zone can also create upward momentum needed to achieve higher targets. It comes down to ones market opinion. The next weeks close after the hammer also gives follow up confirmation. For now this pattern has clearly pushed us out of the 66% retracement zone and the next retracement level is 78.6% near 11400. There is also a gap above 11436 that will act as the next resistance on daily charts.

Bank nifty just completed wave 2 and should be starting wave 3. We closed the week down and remain below the 38.2% retracement mark, but above the 20dma. The next level is near the 40 week average near 24274 followed by the Upper band at 25600.