Bank Nifty Analysis. As on Wed 7 April 2021. CMP 32,501. Posted at 8:30 am.
Bottom line : The correction towards the 30,000 ~ 30,500 level continues. On completion, bank nifty and banking stocks should be a good buying opportunity.
Primary count : Price appears to be in a small 4th wave correction that is likely to take the shape of a triangle or flat, before further lows are seen at the 30,000 ~ 30,500 level. On the 4 hour chart, Wave ii of this C wave that ended at 36,497 was a zigzag. Guideline of alternation suggests wave iv would be a triangle or flat.
Alternate count : This count also shows that price is in a larger 4th wave correction. It shows the entire rally from 29,695 to 37,708 was a B wave. Price could be in either a bullish triangle or expanded flat. If a triangle, price could end wave C at roughly 31,500. But if a flat, then price would likely test the 29,000 level.