Bank Nifty Elliott wave, Open Interest, Hourly and 15 Minutes!
Dec 16, 2021
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Nifty and Bank Nifty has continued to move in the high volatile environment but without any meaningful trend. There had been sharp up and down move with no net progress.
During such times it becomes important to see Elliott wave patterns that has worked out amazingly well.
Below is the Bank Nifty chart with Elliott wave – Neo wave Diametric pattern applied on hourly along with Open Interest profile and 5 minutes chart. Yes, applying Elliott wave on 15 minutes can also provide amazing trade setups for Intraday traders
Bank Nifty Hourly chart:
Bank Nifty 15 minutes chart:
Elliott wave analysis
Above chart of Bank Nifty clearly shows by combining Elliott wave analysis along with Open Interest profile provides an amazing Trade setup on Bank Nifty.
Bank Nifty post completing the Diametric pattern on downside showed an overlapping rise. This Diametric pattern we have been talking about since many days and you can refer it in this research as well published on 25th November and later on 30th November. Click here to see that article
Post completion of Diametric pattern prices are moving in form of wave B. The internal counts of this wave B is shown on 15 minutes chart.
Open Interest profile – 37000 Call option shows huge addition in Bank Nifty call side. Today being expiry some reduction will be seen by tomorrow but a huge rise is also suggesting that the bias is tilted to downside.
Bank Nifty 15 minutes Elliott wave: The entire move since the formation of wave A low near 35000 is in form of double corrective. Prices formed a Flat pattern in the first correction a-b-c and within that as well wave c formed a Terminal impulse. After that there was a fall in form of wave x and then the rise is in form of Extracting Triangle pattern with neckline near 36200 levels. Only a break below this will confirm that the pattern is complete and downside trend has started which will result into bigger downtrend to resume.
In a nutshell, by combining Elliott wave on hourly and 15 minutes chart one can form classic Option Trading strategy for Positional or Intraday trading. Next few hours will be important on Bank Nifty and is going to further confirm if the bigger downside breakdown is happening or we are seeing a bounce back again on upside. Close above 37100 is required for sideways grinding to continue and on downside move below 36200 will be bearish.
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