Banknifty Analsis for 7th Jan'25

1. Support and Resistance Levels

Support Level: Around 49,960, as indicated by the horizontal blue line in the chart. This appears to be a key demand zone where the price has historically reversed.
Resistance Levels:
- Immediate resistance around 51,000.
- Secondary resistance around 52,000-52,500.

Based on the visible pattern:
- It seems like Bank Nifty is completing a corrective wave (likely Wave 4 or C). The current movement could indicate the completion of the correction and entry into an impulsive wave.
- Look for signs of the start of Wave 5 for an upward movement.

Using Fibonacci retracement (assuming the last swing high was 52,500 and swing low was 49,000):

Key Levels:
- 23.6%: 50,560 (Minor resistance).
- 38.2%: 50,960 (Key resistance).
- 61.8%: 51,920 (Major resistance zone).
Strategy: Price action near these levels will confirm whether it continues upward or faces rejection.

Without plotting exact Gann levels, the trend suggests a sideways-to-downward bias with a key focus on the 49,960 support line.
A breakdown below 49,960 could accelerate selling pressure toward 48,500.

Pivot Point: Around 50,000 (acts as equilibrium).
- Resistance 1 (R1): 50,600
- Support 1 (S1): 49,500
- Resistance 2 (R2): 51,200
- Support 2 (S2): 48,900

A downward-sloping trendline from previous highs suggests the overall trend remains bearish until a breakout above 51,000-51,200.
If the price sustains above 51,000, it would signal a potential trend reversal.

Bullish Strategy:
- Entry: If the price bounces near 49,960 with strong bullish candles.
- Target: 50,960 (Fibonacci 38.2%) and 51,920 (Fibonacci 61.8%).
- Stop Loss: 49,500 (below recent support).
Bearish Strategy:
- Entry: On a breakdown below 49,960 with high volume.
- Target: 48,900 and 48,500.
- Stop Loss: 50,500 (above the breakdown level).
Neutral Strategy:
- Trade cautiously within the range of 49,960 and 51,000. Enter only on breakout or breakdown.

Financial Astrology