PSU Bank Index  : Current Market price 3898 (can also be ready in conjunction with Bank Nifty Elliottwave post)

Nifty PSU Bank Nifty

Nifty PSU Bank

Beautifully clear textbook elliottwave structure in the PSU Bank Index.  From Feb 2016 at 1894, there are 5 waves clearly visible till 3921 in May 2017 which completed wave 1 (or A), followed by a 3 wave correction which entered the 4th wave triangle territory of 1 lesser degree (as it should) and completed wave 2 (or B).  The subsequent explosive move to the upside appears very much to be a 3rd wave.

So a simple 5 wave up and 3 wave correction was able to predict the subsequent move up.

In conjunction with the chart of State Bank of India and other PSU Bank charts (to be posted soon), there were numerous confirmations.

If as expected this is a wave 3, it should reach 161.80% - 200% of wave 1 i.e. 5177 to 5952.

If this is some kind of corrective move (tho' highly unlikely), 127% of wave 1 is at 4475.

Posted in 3rd wave, cnx psu, cnx psu bank, psu bank index, public sector bank index, state bank of India, state banks.