Banknifty - Daily Analysis - 29th Jan'25

 I've displayed the chart you uploaded, but analyzing it using technical analysis tools like Elliott Wave Theory, Fibonacci retracements, Gann Angles, and others requires a bit of detail. Based on the chart alone, here’s a general approach you can take for analysis:

1. Support and Resistance Levels

• Support Level: This is typically the lowest point that the asset has consistently bounced off in the recent past. From the chart, it seems that the price level around 48,850 may serve as a support zone, given that it has reversed multiple times in recent data.
• Resistance Level: The resistance is generally the highest point, where prices have struggled to break above. The price seems to face resistance at 49,900 and 50,000, considering the recent attempts at a breakout that failed.

2. Elliott Wave Theory

• Based on the current chart structure, you’d need to identify possible impulse waves and corrective waves.
  • Wave 1 (Impulse): If the market made a strong upward move (especially after breaking a resistance line), this could represent an impulse wave.
  • Wave 2 (Correction): A pullback after a strong move down would represent a correction.
  • From this point, you could potentially count forward, trying to identify Wave 3 (another strong move), followed by further corrections (Waves 4 and 5).

3. Fibonacci Retracements

• Retracement Levels: Identify the last significant upward or downward movement and use Fibonacci retracements from the high to the low.
  • 23.6% - Slight pullback
  • 38.2% - Stronger pullback
  • 50% - A significant level
  • 61.8% - Major level of resistance/support.

For instance, if the move from the low of around 48,000 to the high near 51,500 is significant, you could apply Fibonacci retracement to predict a pullback.

4. Pivot Points

Pivot points are calculated based on the high, low, and close of the previous day. In your case:

• Pivot Point (P): At 49,165.95, acting as a critical level of support and resistance.
• Support: Below P, calculate the first and second levels of support (S1, S2).
• Resistance: Above P, calculate the first and second levels of resistance (R1, R2).

5. Trendline Analysis

• If there is a clear trendline (ascending or descending), this could give you an idea of when the price may bounce or break out.

6. Suggested Trading Strategy:

For a Long Trade (Bullish) Strategy:

• Entry: Buy near support or when the price breaks resistance at around 49,200.
• Target: Target the next major resistance levels, which might be 49,800 to 50,000.
• Stoploss: Set the stop below the support level of 48,800 to protect from significant pullbacks.

For a Short Trade (Bearish) Strategy:

• Entry: Sell near resistance at 49,900 or if the price breaks down below 48,800.
• Target: Aim for the next support levels, perhaps near 48,200 or 47,800.
• Stoploss: Set the stop loss above 50,000 to limit risk in case of a breakout.zz