Banknifty - Analysis - Daily Chart

Analysis

1. Identifying Support and Resistance Levels

• Support Levels:
  • Immediate support: ~48,000 (recent lows visible in the chart).
  • Next strong support: ~47,200 (previous consolidation zone before breakout).
• Resistance Levels:
  • Immediate resistance: ~49,200 (recent pivot highs visible).
  • Next resistance: ~50,500 (psychological level + prior significant swing high).

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2. Elliott Wave Theory

• The chart appears to be in a corrective wave structure, likely part of a Wave 4 or beginning of Wave C.
• Wave Formation:
  • Recent downtrend aligns with a corrective phase.
  • If this is Wave 4, expect a potential upward move (Wave 5) targeting the prior high (~53,000).
  • If it’s a continuation of Wave C, further downside is possible, with 47,000 as a key target.

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3. Fibonacci Ratios

• Fibonacci Retracement:

  • Drawn from the swing high (53,000) to the swing low (48,000):
    • 38.2% retracement: ~49,300 (potential resistance).
    • 50% retracement: ~50,000 (key psychological level).
    • 61.8% retracement: ~50,700 (major resistance zone).

• Fibonacci Extensions:

  • Downside targets: 1.272 (~47,200), 1.618 (~46,500).

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4. Gann Angles

• Gann angles drawn from the recent high (~53,000) suggest:
  • Dynamic support near 47,800.
  • Resistance aligned near 49,200.

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5. Pivot Points

• Based on recent price action:
  • Pivot point: ~48,600.
  • Resistance levels: ~49,200 (R1), ~50,000 (R2).
  • Support levels: ~48,000 (S1), ~47,200 (S2).

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6. Trendlines

• Downtrend clearly visible with lower highs and lower lows.
• A break above the downward-sloping trendline near 49,000 could signal bullish momentum.

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Trading Strategy

Bullish Scenario (Trend Reversal):

• Entry: Above 49,200 (confirmation of trendline breakout and above resistance).
• Target 1: 50,000 (50% Fibonacci retracement).
• Target 2: 50,700 (61.8% Fibonacci retracement).
• Stop Loss: 48,500 (below immediate support).

Bearish Scenario (Continuation of Downtrend):

• Entry: Below 48,000 (break of support level).
• Target 1: 47,200 (previous swing low + Fibonacci extension).
• Target 2: 46,500 (Fibonacci 1.618 extension).
• Stop Loss: 48,600 (above pivot point).

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