Banknifty - Detailed Analysis for next week ending 27th Dec'24

 To provide a comprehensive analysis of the Bank Nifty daily chart using methods like Elliott Wave Theory, Fibonacci Retracement, W.D. Gann principles, and technical levels (support, resistance, entry, stop-loss, and target), I'll need to extract key data points from the chart.

Since I can't interact with the chart directly, I'll analyze it based on visible trends and patterns. Here's the breakdown:

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1. Elliott Wave Analysis

• Current Wave Structure:
  • Bank Nifty appears to be in a corrective wave phase (likely Wave 4 or an ABC correction).
  • The last impulse wave seems to have completed near the highs (~54,000).
  • The recent downward move suggests a corrective structure.
• Next Week's Expected Move:
  • If Wave 4 is completing, we may see a potential Wave 5 impulse upward, targeting the previous high or beyond.
  • If the correction extends (ABC pattern), the index may test lower support levels.

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2. Fibonacci Retracement

• Using the recent high (~54,000) and visible low (~47,000):

  • Key Retracement Levels:
    • 23.6%: ~51,500
    • 38.2%: ~50,500
    • 50%: ~50,000
    • 61.8%: ~49,500

• Analysis:

  • Bank Nifty is near the 38.2% retracement (~50,500). A break below could push it toward the 50% level (~50,000).
  • If the index holds above 50,500, a bounce toward 51,500 or higher is likely.

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3. W.D. Gann Principle

• Time Cycles:
  • Bank Nifty may complete its corrective phase within the next 5-7 trading days.
  • If Gann angles align, a strong reversal or continuation move is expected after the correction.
• Price Levels:
  • Key levels from Gann's square of nine:
    • Support: ~50,000
    • Resistance: ~52,000–52,500

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4. Support and Resistance Levels

• Support:

  • Immediate: 50,500 (Fibonacci 38.2%)
  • Key: 50,000 (Psychological and 50% retracement)
  • Strong: 49,500 (61.8% retracement)

• Resistance:

  • Immediate: 51,500 (23.6% retracement)
  • Key: 52,000–52,500 (Gann and prior highs)
  • Strong: 54,000 (All-time high)

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5. Entry, Target, and Stop-Loss

• Bullish Scenario (Bounce expected):

  • Entry: Around 50,500–50,700 if support holds.
  • Target: 51,500 and 52,500.
  • Stop-Loss: 50,000.

• Bearish Scenario (Breakdown below 50,500):

  • Entry: Below 50,500 after confirmation.
  • Target: 50,000 and 49,500.
  • Stop-Loss: 51,000.

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6. Indicators to Watch

• RSI: Check if RSI is oversold (<30) or near a reversal zone.
• MACD: Look for bullish or bearish crossovers for momentum confirmation.
• Volume: Observe volume spikes near key support or resistance levels.

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7. Point of Control

Banknifty Spot sustaining above 51,230 is a clear bullish sign for target of 52,000.   One should not remain long below this level and short above this level for week ending 27th Dec'24

Summary

• Expected Move:

  • If 50,500 holds, a bounce toward 51,500–52,500 is expected.
  • If 50,500 breaks, a drop toward 50,000 or 49,500 is likely.

• Strategy:

  • Trade cautiously with proper stop-loss placement.
  • Use confirmation (candle patterns, volume) near support/resistance levels for entries.

For precise levels, I recommend plotting the chart and confirming Fibonacci levels and trendlines in your trading platform. Let me know if you need further clarification!   Above analysis is for educational purpose and not trading recommendation.