Bank Nifty Support and Resistance Levels for 1st January 24

Dec 31, 2023

1. **Primary Support: 48500 (Previous Resistance, now acting as Support)**
- If the market opens above 48500, watch for sustained trading above this level. If it holds, it could signify a potential shift in momentum, turning the previous resistance into support.

2. **Secondary Support: 48213**
- This remains a crucial support level based on your previous analysis. If the market experiences a pullback, monitor how it reacts around 48213. A bounce from this level could indicate continued strength.

3. **Tertiary Support: 48000/47800**
- These levels are additional supports, especially if there is a deeper retracement. Traders should be cautious if the index approaches these levels and monitor price action for potential reversal signals.

**Resistance Levels (01/01/2024):**

1. **Primary Resistance Turned Support: 48500**
- If the market opens above 48500, observe if it can sustain trading at this level. A successful establishment of 48500 as support could pave the way for further upside potential.

2. **Secondary Resistance: No Immediate Resistance Based on Chart Analysis**
- Since the market is at an all-time high, there may not be any immediate chart-based resistance. However, monitor the price action and be cautious of any signs of overextension.

**Trading Strategy (01/01/2024):**

- **Bullish Scenario (Market opens above 48500):**
- Wait for confirmation and sustained trading above 48500.
- If 48500 holds as support after the initial breakout, consider potential upside trades.
- Set appropriate stop-loss levels to manage risk.

- **Bearish Scenario (Market shows weakness below 48500):**
- If the market fails to hold above 48500, monitor the support levels mentioned.
- A break below 48213 might signal a deeper retracement, and caution is advised.
- Consider potential short trades if the support levels are breached convincingly.