Banknifty - Analysis - Weekly Chart

Analysis

1. Identifying Support and Resistance Levels

  • Support Levels:

    • 48,000: Immediate support zone, as it aligns with a prior swing low.
    • 46,500: Key support from the previous consolidation in early 2023.
    • 45,000: Long-term support zone from 2022.

  • Resistance Levels:

    • 49,800: Immediate resistance from a prior swing high.
    • 51,000–51,200: Significant resistance, aligning with a recent peak in 2024.
    • 52,500: Major resistance from the multi-year high.

2. Elliott Wave Theory

  • Wave Structure:

    • The chart appears to be completing a corrective wave (Wave 4), indicating that an impulsive Wave 5 could follow.
    • If the downtrend continues, we may see an extended corrective phase (Wave C), targeting 46,500 or lower.

  • Key Levels:

    • Wave 5 target (uptrend continuation): Above 52,000, potentially testing 55,000 (prior highs).
    • Wave C target (downtrend continuation): Below 47,000, extending to 45,000.

3. Fibonacci Ratios

  • Fibonacci Retracement:

    • Drawn from the 2022 low (~36,000) to the 2024 high (~55,000):
      • 38.2% retracement: ~48,000 (current support zone).
      • 50% retracement: ~45,500.
      • 61.8% retracement: ~43,000.

  • Fibonacci Extensions (if downtrend extends):

    • 1.272 (~46,000) and 1.618 (~43,500).

4. Gann Angles

  • Support Zones:

    • Gann angles suggest strong support near 46,500.
    • A break below this level could lead to sharp declines toward 45,000.

  • Resistance Zones:

    • Dynamic resistance is visible near 49,800 and 51,000.

5. Pivot Points

  • Pivot Point Calculation:
    • Weekly Pivot: ~48,500.
    • Resistance (R1): ~49,800; (R2): ~51,000.
    • Support (S1): ~47,000; (S2): ~46,000.

6. Trendlines

  • Downtrend:
    • A clear downward-sloping trendline can be drawn from the recent highs (~55,000) to ~49,000.
    • A breakout above 49,800 would confirm a trend reversal.
  • Long-term Trendline:
    • The uptrend from 2021 lows (~30,000) intersects near 46,500–47,000, a crucial support zone.

Trading Strategy

Bullish Scenario (Trend Reversal):

  • Entry: Above 49,800 (confirmation of a breakout above resistance).
  • Target 1: 51,000 (key resistance zone).
  • Target 2: 52,500 (multi-year high zone).
  • Stop Loss: Below 48,500 (immediate support).

Bearish Scenario (Continuation of Downtrend):

  • Entry: Below 47,000 (breakdown of current support).
  • Target 1: 46,000 (Fibonacci extension).
  • Target 2: 45,000 (long-term support).
  • Stop Loss: Above 48,000 (recent support).

Tips for Execution

  1. Confluence Zones: Look for levels where Fibonacci, pivot points, and trendlines align.
  2. Volume Analysis: Ensure volume confirms the breakout or breakdown.
  3. Risk-Reward Ratio: Maintain a minimum 1:2 risk-reward ratio for trades.
  4. Confirmation: Use indicators like RSI or MACD to confirm oversold or overbought conditions before entry.


Comments

Post a Comment

Popular posts from this blog

Road Map for learning KP Astrology from Basics to Mastery

Phase 1: Foundations of Vedic Astrology Before diving into KP astrology, you need to understand the basics of Vedic astrology, as KP is a derivative system. Learn the Basics : Zodiac Signs : Characteristics of 12 signs (Aries to Pisces). Houses : Significance of 12 houses in astrology. Planets : Roles and attributes of 9 planets (Sun, Moon, Mars, Mercury, Jupiter, Venus, Saturn, Rahu, Ketu). Aspects : How planets influence each other through drishti (aspect). Nakshatras : The 27 lunar constellations and their traits. Familiarize with Astrology Tools : Learn how to draw and read a basic birth chart (D1 or Rashi chart). Understand the Panchanga (five limbs of astrology) and their influence. Study Basic Principles : Study planetary combinations (yogas). Learn how to identify planetary strengths (exaltation, debilitation, combustion, retrogression). Phase 2: Introduction to KP Astrology Once you have a strong foundation, start learning KP-specific techniques. Und...
Read more

Nifty - Detailed Analysis - 28th Feb'25

 Nifty 50 daily chart analysis using multiple technical methodologies, including Elliott Wave Theory, Fibonacci Ratios, Gann Angles, Pivot Points, and Trendlines. The analysis will include: Nifty 50 Daily Chart Technical Analysis 1. Elliott Wave Theory ( NIFTY 50 Elliott Wave Analysis: Trend Reversal and Forecast for 2025 - Elliott Wave Trading Education > Blogs List ) Figure: Nifty 50 daily chart with a labeled Elliott Wave count, showing a five-wave advance into late 2024 (peak near 26,300) followed by a corrective decline. The chart suggests the recent down-move is part of a Wave ((ii)) correction (grey labels), with an expected Wave ((iii)) to the downside to follow (orange projection). This aligns with the view that the prior bullish cycle (Wave (5) in orange) has completed, and the index is now in a multi-wave corrective phase. According to Elliott Wave analysis, Nifty’s uptrend peaked in late September 2024 after a five-wave impulse rally ( NIFTY 50 Elliott Wave A...
Read more