Bank Nifty for Week Starting Jan 30, 2017

For Last 2-3 weeks Bank Nifty shown very volatile moves. It moved up very fast from 18300 to 19250 level, corrected sharply to 18700 level and again sharply moved up to 19700. Let us analyze why it is moving in this manner!

The down move from 20300 terminated in ED (ED started from 19150-19200 level). the wave 5 was very short and hence I was not confident whether it was really ED? But post moves and specially the speed at which minor wave b & c of Major wave A completed confirms the same. Also minor wave a terminated where ED started. I mentioned about this ED might have started at 19130 level(as waves are very complex and not easy to identify) in EOD Dec 16 update.

https://optiontradingcafe.blogspot.in/2016/12/bank-nifty-endiang-diagonal-in-progress.html

Here I am posting Post ED moves analysis link:

https://optiontradingcafe.blogspot.in/2016/12/nifty-bank-post-ending-diagonal-move_12.html

We normally see that time taken by minor wave b is much less than impulsive minor wave a and minor impulsive wave c takes almost equal or less time than minor wave b. Also ratios exhibited by minor waves of A may be again repeated by Major waves of ABC pattern.

Wave	Price	Ratio(%)	Time(Days)	Ratio(%)
A
a	1445		12
b	554	38.34	4	33.33	b/a
c	1073	74.26	4	33.33	c/a

Now wave A may still in progress and may complete around 19850/19950 zone. So as per Post ED move analysis, post completion of wave A, Index should fall sharply to 19000 level in next 2-3 days and complete corrective wave B in next 6-7 days. Post completion wave C should move up to target of 20400. 

Gann Levels

Also observe Index moved sharply from 17600 to 18300, 18300 to 19000 and again from 19000 to 19700. This is because 17600/18300/19000/19700 are 3 digit Gann nos. And sharp moves are due to Post ED waves. So break of 19700 tomorrow we may quickly see index at 19000 and then again breaking 19700 from down  index may reach sharply to 20400(3 digit Gann No).

Gann Time Analysis:

Jan 29 is 144th calendar day from top of Sep 7, 2016(Jan 29 is Sunday, so we consider Jan 30) and Jan 31 is 90th trading day from Top of Sep 22, 2016. So we may see a Minor Top on Jan 30/31 and may be some volatile movement in Bank Index.