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Bankniftyanalysis

What Stopped the recovery of Bank Nifty? (Educational Post)How to read a chart and make one is an art which one can master by practicing, understanding the patterns and applying logic in addition to reasoning. Today we will try to master this art with the help of below chart of Bank Nifty. Let us analyze it togther. After reading each paragraph try to look at the chart again for understanding it better. Look at the chart of Bank nifty above. As you can see in the chart Bank Nifty is moving in a parallel channel like a canal since more than 1 year and 3 months or so. After making a high above 48.6K Bank Nifty formed a bottom near 44833 which was a 200 days EMA support, Bank Nifty consolidated and then started surging ahead. Now something happened on Wednesday which hampered the progress. The progress was stopped by the trendline resistance indicated by the blue line. Facing the heat of the resistance Bank Nifty plunged down only to be supported by support zone between 46219 and 46418. This support zone as you can see in the chart consist ot bottoms and tops of few candles ranging from 4th December 2023 to 20th February 2024 and 50 days EMA which is currently at 46219. This can be the future support zone in case Nifty does not recover from this level. Again after taking this support Nifty tried to surge ahead again but was again stopped by the same trend line which cam to effect on Wednesday. Start of this trend line can be seen on the candle of 16th January. This is how Technical analysis works. Can we predict future of Bank Nifty with the help of this chart? Predicting future moves is always risky and is full of assumptions but what we can see here indicates that crossing the resistance zone of 47091 (Trendline resistance) and High of Wednesday 47352 will be a tough task for Bank Nifty. But if Bank Nifty crosses this zone the next levels/ resistances will be near 47670 or 47906. Crossing and closing above 47906 the Nifty can reach the next resistance levels of 48303 or 48595. This is how you can analyse a chart. By applying logic you will gain experience. By applying experience and reasoning you will gain wisdom. Wisdom will help you in chartering your path through the maze of Wealth creation. Charts are nothing but mathematical representation of how investors/speculators behave at particular levels and in particular zones. With the help of charts you can understand paths, patterns and future and past directions of how markets/indices/stocks behave. If you become an expert by watching/drawing 100 charts every day, you can even predict future levels of markets/indices/stocks.
NSE:BANKNIFTY
by Happy_Candles_Investment
BANKNIFTY--Case1 or Case2??BANKNIFTY Index is showing bearish pressure after the liquidity grab above 47200 levels, tomorrow we have a chance of price trading in a channel and likely to test the demand zones at 46500 levels... these two possible cases may happens :: Case1::Rally base Rally A strong rise is observed from the demand zone at 46500 levels, by creating a bearish channel price may test this demand and again be bullish. on topside if rally base rally happens the next resistance is 47600-47700. So take care of your trades. Case 2:: Rally Base Reversal On topside we have a triple top, which is a strong resistance so, we can expect a break below the the demand zone and it will continue its movement towards bottom side. Look for buy if the price grabs the liquidity on below the demand zones and keep in long side from demand zones.
NSE:BANKNIFTY
by IIT-Trader
12
BANKNIFTY ANALYSISNo Trading Reversal Zone: Range: 46,662 to 46,800 Analysis: The market has established a no trading reversal zone in the range of 46,662 to 46,800, suggesting a period of consolidation or indecision. Traders should exercise caution within this range, awaiting clearer signals before making significant trading decisions. Previous Day High and Open Interest (OI) Resistance: Previous Day High (PDH): 47,020 OI Resistance Zone: 47,020 to 47,110 Analysis: The PDH at 47,020 serves as a critical level. If the price surpasses this point, it may encounter resistance within the OI resistance zone from 47,020 to 47,110. Traders should closely monitor price action in this area for potential breakout opportunities. Previous Day Low and OI Support: Previous Day Low (PDL): 46,350 OI Support Zone: 46,350 to 46,440 Analysis: The PDL at 46,350 acts as a key reference point. If the price approaches this level, it may find support within the OI support zone ranging from 46,350 to 46,440. Traders should observe how the market reacts around this area, as a bounce or breakdown could indicate potential future movements. Profit Booking Zone for Longs: Profit Booking Zone: 47,270 to 47,400 Analysis: Traders holding long positions may consider booking profits in the zone from 47,270 to 47,400. This area represents a potential region where bullish momentum could face resistance, and profit-taking becomes a strategic consideration. Overall Analysis: The market is currently within the no trading reversal zone, suggesting a lack of clear direction. Traders should closely watch the PDH, OI resistance zone, PDL, and OI support zone for potential breakout or breakdown signals. The profit booking zone for longs provides a strategic area for traders to consider securing profits from bullish positions. Key Takeaways for Traders: Caution: Exercise caution within the no trading reversal zone and wait for clearer signals. Breakout/Breakdown Opportunities: Monitor the PDH, OI resistance, PDL, and OI support for potential breakout or breakdown opportunities. Profit Booking: Traders with long positions may consider booking profits in the specified profit booking zone. This analysis provides a framework for traders to navigate potential market movements based on historical price levels and open interest data. However, it's crucial to use additional technical indicators, real-time data, and risk management strategies for a comprehensive trading approach. Stay informed about external factors and market news that could impact Bank Nifty's movements.
NSE:BANKNIFTY
by Shivam_Bhanot
BANKNIFTY ANALYSISBANKNIFTY Analysis for the Upcoming Session: 1. Previous Day High and Open Interest (OI) Resistance: - Previous Day High (PDH): 47,363 - OI Resistance Zone: 47,360 to 47,426 - Analysis: The previous day high at 47,363 represents a crucial level. If the price surpasses this point, it may encounter resistance in the OI resistance zone from 47,360 to 47,426. Traders should closely monitor price action in this area for potential breakout opportunities. 2. Previous Day Low and OI Support: - Previous Day Low (PDL): 46,886 - OI Support Zone: 46,821 to 46,889 - Analysis: The previous day low at 46,886 serves as a key reference point. If the price approaches this level, it may find support within the OI support zone ranging from 46,821 to 46,889. Traders should observe how the market reacts around this area, as a bounce or breakdown could indicate potential future movements. Overall Analysis: - The market has established a range between the previous day high and low. - Traders should pay attention to the OI resistance zone above the previous day high and the OI support zone below the previous day low. - A breakout above the OI resistance zone could signal bullish momentum, while a breakdown below the OI support zone may indicate a bearish trend. Key Takeaways for Traders: - Bullish Scenario: A decisive move above the previous day high and the OI resistance zone could provide opportunities for bullish trades. - Bearish Scenario: If the price drops below the previous day low and the OI support zone, it may present opportunities for bearish trades. - Caution: Traders should exercise caution within the established range and wait for clear signals before initiating significant positions. Remember, this analysis is based on historical price levels and open interest data, and actual market conditions may vary. It's essential to use additional technical indicators, real-time data, and risk management strategies for a comprehensive trading approach. Always stay informed about external factors and market news that could influence the Bank Nifty's movements.
NSE:BANKNIFTY
by Shivam_Bhanot
BANKNIFTY ANALYSIS BANKNIFTY Analysis for the Upcoming Session: 1. Previous Day High and Open Interest (OI) Resistance: - Previous Day High (PDH): 47,135 - OI Resistance Zone: 47,135 to 47,250 - Analysis: The previous day high at 47,135 represents a crucial level. If the price surpasses this point, it may encounter resistance in the OI resistance zone from 47,135 to 47,250. Traders should closely monitor price action in this area for potential breakout opportunities. 2. Previous Day Low and OI Support: - Previous Day Low (PDL): 46,777 - OI Support Zone: 46,777 to 46,870 - Analysis: The previous day low at 46,777 serves as a key reference point. If the price approaches this level, it may find support within the OI support zone ranging from 46,777 to 46,870. Traders should observe how the market reacts around this area, as a bounce or breakdown could indicate potential future movements. Overall Analysis: - The market has established a range between the previous day high and low. - Traders should pay attention to the OI resistance zone above the previous day high and the OI support zone below the previous day low. - A breakout above the OI resistance zone could signal bullish momentum, while a breakdown below the OI support zone may indicate a bearish trend. Key Takeaways for Traders: - Bullish Scenario: A decisive move above the previous day high and the OI resistance zone could provide opportunities for bullish trades. - Bearish Scenario: If the price drops below the previous day low and the OI support zone, it may present opportunities for bearish trades. - Caution: Traders should exercise caution within the established range and wait for clear signals before initiating significant positions. Remember, this analysis is based on historical price levels and open interest data, and actual market conditions may vary. It's essential to use additional technical indicators, real-time data, and risk management strategies for a comprehensive trading approach. Always stay informed about external factors and market news that could influence the Bank Nifty's movements.
NSE:BANKNIFTY
by Shivam_Bhanot
BANKNIFTY--Inverse Head & Shoulders??Banknifty Index created a inverse Head and Shoulders pattern... price broken the neckline strongly...and retested. on topside clearly resistance is at 46200 and 46500-46550 levels... keep in long side until price is above the neckline... no short side until price breaks the below ...after breaks below the neckline will think of short side for liquidity grab below support levels. If price gives an elimination move below 45500 levels... look for long side...up to the resistance levels.
NSE:BANKNIFTY
by IIT-Trader
1
BANKNIFTY--Double Bottom??BANKNIFTY index is now at support levels..... previously a strong bullish move is observed from this levels.... Price is now at the same strong support...a lot of liquidity is lies below this levels... on topside price is rejected by the trendline multiple times... so we have a trendline liquidity as well on topside.... Wait for the bullish turn from this levels...or after completion of the liquidity below these levels... as of now we have a chance of double bottom...keep in long side from this support levels. Safe traders wait for the price to break the trendline and retracement to enter long... this is the only short cut way to reach the 47200 levels.... those who miss the previous opportunity this is the time to look for buying... ------------------------------------------------------------------------------------------------
NSE:BANKNIFTYLong
by IIT-Trader
1