Banknifty weekly analysis for 12/02/24.
Updated
Banknifty has been trading in a wide range of 2000 points for last three week and is constantly trading around weekkly 20 ema.
Though it has closed below the moving average and took a retest of 61.8% fibonacci level, giving a nice fall after it.
Bullish trade in the index can be trade once it sustains above 46900-47000 zone as it will confirm a W pattern and take out fib rejection levels too.
It is trading between the moving averages on the daily charts. Banknifty is kind of consolidating between the two and a blasting move can be seen once there is a break out or break down of the levels.
Major support level for the market is 44550 and major resistance is around 47000 levels. 16 trading session and 23 days market has been trading between these two levels.
Positional long F&O trade should be initiated after the levels are taken out. Short strangle with SL of the two levels can be entered and can be benefitted.
Major support levels :- 44970, 44500
Resistance levels :- 46000, 416510-80
Wait for the price action near the levels before entering the trade.
Though it has closed below the moving average and took a retest of 61.8% fibonacci level, giving a nice fall after it.
Bullish trade in the index can be trade once it sustains above 46900-47000 zone as it will confirm a W pattern and take out fib rejection levels too.
It is trading between the moving averages on the daily charts. Banknifty is kind of consolidating between the two and a blasting move can be seen once there is a break out or break down of the levels.
Major support level for the market is 44550 and major resistance is around 47000 levels. 16 trading session and 23 days market has been trading between these two levels.
Positional long F&O trade should be initiated after the levels are taken out. Short strangle with SL of the two levels can be entered and can be benefitted.
Major support levels :- 44970, 44500
Resistance levels :- 46000, 416510-80
Wait for the price action near the levels before entering the trade.
Note
A bearish engulfing candle on the daily charts is showing some negativity in the index and there are chance of selling continuing.
If there is a gap down opening below today's low, there will be a sell off in the markets and it can take support around 44k level after breaching 44550 levels.
In case of a gap up opening, avoid trading and trade only a bearish setup as bullish movement will be slow and not confirm.
There was a nice support from 200 ema on daily charts. Wait for the market to breach the level after a flat to slight gap up/down opening with proper R:R ratio.
Major supports :- 44660, 44500-50, 44300
Bearish target can be achieved as there is a negative momentum in the markets.
Resistance levels :- 45000, 45580
Wait for the price action near the level before entering the market.
Note
Tomorrow is the weekly expiry for the index and no clear trend is there in the market.
It has given nice movement both side in the last trading sessions. There are chance of a sideways expiry.
Still the major resistance of 45700 is there and once this level is cleared, there are chance is it will test the round number of 46k.
Major resistance :- 45740, 46040.
If there is a gap down opening, it would be wise to avoid trading as the markets are indecisive for now.
In case market gives a bearish move and breachs the support level of 44550, bearish trade can be initiated with good points to capture in the coming session and positional/swing trades can be initiated.
Support :- 45380, 44960
Wait for the price action near the level before entering the market.
Trade active
For last 27 days banknifty is trading between both the moving averages and today's closing is above the moving averages.
It took a nice support from the 200 DEMA and respected the levels.
If there is a gap up opening above 46k levels, there is high probability of it testing 46600 levels.
In case of a gap down opening, there will be confusion and an inside candle may be seen on the daily charts.
Major resistance levels :- 46600, 47000
Support :- 45750, 45450
Wait for the price action near the levels before entering the markets.
:)
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