Bank Nifty Tomorrow Prediction: 5th Wave Impulse 18th July 2023

Bank Nifty tomorrow prediction is a topic that captivates the minds of traders and investors alike. The ability to anticipate market movements and make well-informed decisions is crucial for success in the fast-paced world of stock trading. In recent times, BankNifty has undergone a sub wave 4 correction, an intriguing zigzag move in the form of ABC-X-ABC. In this article, we will delve deeper into this correction, analyze its impact on BankNifty, and explore the possibilities of the upcoming 5th wave impulse. However, please keep in mind that all trading activities involve risks, and the following content should not be considered as financial advice.

banknifty 18 july 2023

The Sub Wave 4 Correction:

BankNifty experienced a double correction in the form of ABC-X-ABC, which proved to be quite significant. This correction led to a substantial drop of over 1000 points, commencing from 45655 and reaching a low of 44548. The market sentiment during this period was marked by caution and uncertainty.

Breakout and Structural Changes:

However, it’s essential to note that BankNifty has recently shown some positive signs. First, it managed to break out from the downward channel, indicating a potential change in market direction. Additionally, the bearish structure of Lower Highs (LH) and Lower Lows (LL) was broken, hinting at a shift towards a more bullish sentiment.

In the 30-minute chart, BankNifty found support from its 200 Simple Moving Average (SMA). The 200SMA is a significant technical indicator used by traders and analysts to assess the overall market trend. Its supportive role after the correction could be considered a positive sign for the future movement of BankNifty.

Intraday Breakout:

On the day of the breakout, BankNifty achieved a high of 45556. This significant movement was observed post the breakout from the downward channel, further solidifying the potential change in trend.

Bank Nifty Tomorrow Prediction : 5th Wave Impulse

Now, the focus shifts to the upcoming 5th wave impulse. According to Elliott Wave Theory, the 5th wave is the final leg of an Elliott Wave sequence, often leading to a substantial price movement. This 5th wave has five impulse subwaves, of which sub wave 1 started from the low of 44548 and made a high of 44965, resulting in a 400+ points rally. Following this, sub wave 2 corrected from 44965 to 44710, a 200+ points correction. The powerful sub wave 3 then started from 44710 and made a high of 45556, which extended beyond the Fibonacci level above 1.618%. After sub wave 3, a corrective sub wave 4 is expected, followed by the final sub wave 5 to the upside which finally expected to hit the target of 45900 to 46200 in coming days.

Open Interest Analysis:

In the open interest analysis, we find that put writers have captured the 45000 level with high open interest (OI). This suggests that market participants are hedging their positions or expecting a support level at 45000. On the other hand, the put-call ratio (PCR) is now at 1.56, indicating that the market is currently overbought. It means that the number of outstanding put options is significantly higher than call options, which may lead to a short-term correction in the market. Call writers are more active at the 46000 level, suggesting a potential resistance zone for BankNifty in the near term.

Risk Management and Disclaimer:

Trading and investing in financial markets carry inherent risks, and it’s essential to be aware of these risks before making any decisions. The content provided in this article is for informational purposes only and should not be construed as financial advice. Always conduct thorough research, consider your risk tolerance, and consult with a qualified financial advisor before making any investment or trading decisions.

Conclusion:

In conclusion, Bank Nifty tomorrow prediction remains a topic of great interest for traders. The sub wave 4 correction in the form of ABC-X-ABC led to a substantial downside movement, but positive signs like the breakout and supportive indicators offer hope. As the 5th wave impulse unfolds, potential price movements will demand cautious analysis and risk management strategies. As always, staying informed, studying patterns, and considering technical indicators will be vital to navigate the dynamic world of stock trading successfully.

 

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