Banknifty - Analysis (Daily Chart)

 1. Support and Resistance Levels

• Support Levels:

  • 48,000 (current psychological level and recent consolidation zone).
  • 46,500 (previous swing low visible in the chart).
  • 44,000 (major support level from earlier lows in 2024).

• Resistance Levels:

  • 49,500 (recent high and rejection zone).
  • 50,500 (psychological barrier and past consolidation zone).
  • 53,000 (major high from late 2024).

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2. Fibonacci Ratios

Fibonacci retracement can be used to analyze the pullback levels of the recent trend:

• Recent peak (around 55,000) and current low (48,000) provide key retracement levels:
  • 38.2% Retracement: ~50,000
  • 50% Retracement: ~51,500
  • 61.8% Retracement: ~53,000

These levels act as potential resistance zones during any upward retracement.

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3. Elliott Wave Theory

• Based on the chart structure:
  • The chart appears to have completed a 5-wave impulse structure, followed by an ongoing corrective phase (ABC pattern).
  • Wave A: Downward move from ~55,000 to ~48,000.
  • Wave B: Expected retracement (possible upward move to ~50,000–51,500).
  • Wave C: A potential continuation downward after the retracement (targets ~46,000 or lower).

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4. Gann Angle Analysis

• The recent downtrend suggests a bearish Gann angle. If prices remain below 50,000, the next support levels (46,000–44,000) could come into play.
• An upward break above 49,500 may shift momentum to a bullish angle.

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5. Pivot Points

• Pivot Point Calculation (Based on Close: 48,785.95)
  • Pivot (P): $(High + Low + Close) / 3 = 49,279.37$
  • Resistance 1 (R1): $2P - Low = 50,926.14$
  • Support 1 (S1): $2P - High = 47,632.60$

These levels can help in setting intraday targets.

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6. Trendlines

• A clear downtrend line is visible, connecting recent lower highs (~55,000 to ~49,500).
• A break above 49,500 could signal the start of a bullish reversal.

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Trading Strategy

1. For Swing Traders:

   • Entry: Around 48,000 (if support holds) or above 49,500 (breakout confirmation).
   • Target: 50,500 (short-term resistance) and 53,000 (Fibonacci retracement level).
   • Stop Loss: Below 47,500 (to protect against breakdown).

2. For Positional Traders:

   • Wait for a retracement to ~50,000–51,500 and watch for rejection to initiate short positions.
   • Target: 46,000 (Wave C completion).
   • Stop Loss: Above 53,000.

3. Intraday Traders:

   • Use pivot points for support and resistance levels:
     • Buy above R1 (50,000) with a target of R2 (51,500).
     • Sell below S1 (47,600) with a target of S2 (46,000).

4. Risk Management:

   • Allocate no more than 1–2% of capital per trade.
   • Adjust stop-loss levels dynamically based on volatility.

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Summary

• Bank Nifty is currently in a corrective phase, with support around 48,000 and resistance near 49,500.
• Watch for breakout or breakdown from these levels to determine the next trend.