M pattern in the Banknifty
The BNF movement for monthly expiry has shown a significant gap up, followed by a swing of more than 700 points, bringing it to the lowest point. Interestingly, at the top, BNF is forming the M pattern, indicating a potential reversal in the near future. Based on this pattern, it is anticipated that if BNF breaks the 45650 level, there could be a substantial downward movement.
Currently, there is selling pressure present in the market, indicating a downward trend. However, the Bank Nifty (BNF) is finding support at the 50% Fibonacci retracement level. It is important to note that a significant resistance level lies at 46300, which needs to be surpassed for a longer-term bullish outlook. To confirm a bullish trend, the BNF must successfully break above 46300 and maintain this level with the support of a daily candle.
If the market gaps down or opens flat tomorrow, there is a possibility of selling pressure. However, sharp selling would only occur if the market falls below 45600, with a downside target of 45458. On the other hand, if there is a gap up in the market, short covering may occur, leading to a retest of the 46000 level. It is important to note that the immediate resistance level stands at 45868.
Currently, there is selling pressure present in the market, indicating a downward trend. However, the Bank Nifty (BNF) is finding support at the 50% Fibonacci retracement level. It is important to note that a significant resistance level lies at 46300, which needs to be surpassed for a longer-term bullish outlook. To confirm a bullish trend, the BNF must successfully break above 46300 and maintain this level with the support of a daily candle.
If the market gaps down or opens flat tomorrow, there is a possibility of selling pressure. However, sharp selling would only occur if the market falls below 45600, with a downside target of 45458. On the other hand, if there is a gap up in the market, short covering may occur, leading to a retest of the 46000 level. It is important to note that the immediate resistance level stands at 45868.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.