The bigger flag has broken down and now looks like a further smaller flag is in formation. In scenario of further breakdown, above chart shows levels of targets using Fib retracements(on various time frames) and flag targets.
This scenario will be invalid if BankNifty breaks out above, given we have a possible scenario of double bottom as well.
Be prepared and...
From the recent lows of 10k the chart shows the major Elliott cycle in green. Waves 1,2,3 are completed. Wave 3 structure is shown in blue.
Wave 4 is under progression and is most likely be a flat/irregular correction or a triangle.
Wave 4a should complete around 11200-11450 region, before heading for Wave 4b upwards for 12106/12300 range, following Wave 4c...
There is no visible RSI divergence with price, hence we should still see some lower levels for Nifty. With the flag pattern, the minimum target is width of flag marked as green on charts.
Will it form the divergence? or further continue to slide further time will tell. Stay tuned!!
Continuing my prior idea on Axis Bank, the ongoing small consolidation channel will provide the next trend direction. It's on the higher time frame support line. Although my personal preference is bulls, bears do not give up easily :).
Levels shown on charts for trading. Use minimal StopLoss for any directional trade after breakout.