The current state of the market presents an interesting dynamic between the Nifty and Bank Nifty indices, as they grapple with significant resistance levels. Notably, Bank Nifty is showing relative underperformance compared to the Nifty50, raising concerns among investors. The pivotal point to watch is the crucial 45,000 level for Bank Nifty, as it holds considerable importance, especially with the Nifty50 possibly on the brink of a breakout. The future direction of the broader market is closely tied to the performance of Bank Nifty.
Upon analyzing the charts of Bank Nifty, it becomes evident that the price is facing a strong resistance level represented by a downward trend line. Breaking through this resistance and maintaining a +1% increase over the next two trading sessions is expected to be a challenging endeavor. If the banking sector maintains its current position for another three to four sessions, it suggests the possibility of a month-long consolidation period within the Bank Nifty. Even in the event of a successful breakthrough at the resistance level, the projected price movement is anticipated to remain within a range of 500 points.
Upon analyzing the charts of Bank Nifty, it becomes evident that the price is facing a strong resistance level represented by a downward trend line. Breaking through this resistance and maintaining a +1% increase over the next two trading sessions is expected to be a challenging endeavor. If the banking sector maintains its current position for another three to four sessions, it suggests the possibility of a month-long consolidation period within the Bank Nifty. Even in the event of a successful breakthrough at the resistance level, the projected price movement is anticipated to remain within a range of 500 points.