Analysis: Nifty BankIts been a while since I have done some analysis on Bank Nifty. So, here is my take on the index.
You can observe the resistance zone on the chart, which is 44150 zone. No wonder this is the previous all-time high of December 2022. Market tried to break this area twice but could not sustain above it. Below this zone it again tried to hold near 44000 round number but then broke down yesterday.
Bank Nifty dropped into a prior support zone 43400 (see on the chart) and today trying to bounce from this area again.
A bearish view from here could be that the previous support zone -- sub-44000 may act as a resistance now. Many people bought around that number and now when it is coming back to that area, they will try to exit at breakeven. Also new traders might short in this area. These sell orders might lead to some reaction from there.
A bullish view could be that market absorbs whatever supply is there near 44000 and goes further into 44150. It could also build this range from 44150 to 44000 to 43400 before deciding its further course.
Only the price action of coming days can tell us what will happen. But I will be cautious near 43900-44000 zone as a buyer and may look for shorting opportunities in the short term.
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Disclaimer: The above idea is not a trading or investment advice. Apply your own due diligence before risking your capital.
