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).
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.
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).
- Drawn from the swing high (53,000) to the swing low (48,000):
-
Fibonacci Extensions:
- Downside targets: 1.272 (~47,200), 1.618 (~46,500).
4. Gann Angles
- Gann angles drawn from the recent high (~53,000) suggest:
- Dynamic support near 47,800.
- Resistance aligned near 49,200.
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).
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.
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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