Nifty Bank IndexLong
Banknifty MTF Analysis
Updated
Banknifty on Monthly tf looks to be travelling in this channel for now, and after three months of correction since it made ATH in Dec 2022, last monthly it made a doji and potentially by April closing it make a Morning star formation which is currently under progress. Also Banknifty has crossed previous two months high so far.
On weekly timeframe, Nifty has given one of the sharpest rally in recent history and the price pattern which it has formed is three while soldiers.
"The three white soldiers candlestick pattern suggests a strong change in market sentiment in terms of the stock, commodity or pair making up the price action on the chart. When a candle is closing with small or no shadows, it suggests that the bulls have managed to keep the price at the top of the range for the session. Basically, the bulls take over the rally all session and close near the high of the day for three consecutive sessions. In addition, the pattern may be preceded by other candlestick patterns suggestive of a reversal, such as a doji."
On weekly charts, as indicated earlier in my previous analysis of pitchfork view posted. BN took support at medial pitchfork line and made a weekly Morning star, with a Insider breakout as well and has been rallying since then
Also, on weekly charts BN in Oct 2021 after making a ATH, went into correction mode in falling channel and did almost 20% correction in 280 sessions and then after giving a falling channel BO in Aug 2022, it made a new ATH in Dec 2022. It moved around 20% in 50% of the time it took for correction from previous ATH i.e. 140 session.
Now, again after making a new ATH in Dec 2022, BN has corrected in falling channel for around 12% in around 120 sessions and last week it has given a falling channel BO, so if BO sustains - I am anticipating similar sort of 12% upsidee move run in 50% of the time it took for correction i.e. a potential that BN can hit 45K by Q2
In terms of Fibo, BN has closed above 61.8% retracement level of the correction from ATH to recent swing low of 38613.5 level. If price continue to sustain above 42K i.e. 61.8% fibo level, then possibility of BN touching the next Fibo level around 43K can't be ruled out even before giving significant pullback
In terms of Bands,BN brokedown 20Weekly MA in Jan'22 and then after 10 weeks of consolidation below it, it has again given a fresh breakout of 20 weekly MA. On previous such instance when it did same in July 2022 - it went on to make a new ATH in Dec'22
In terms of AVWAP, BN has been offlate facing resistance at avwap drawn from ATH levels and has now been trading above it. Previously it tried to close above the avwap levels in Dec 29th, but there wasn't any follow up candle which closed above the high of Dec 29th. This time two consecutive green closing with follow up candle closing above PDH. So, possibility of this avwap acting as a good support is high for positional view.
On daily charts, as posted earlier that it was traveling in falling channel
and finally gave a good breakout and has been so far moving well, with daily RSI inching towards 60+ overall momentum is very high
On 4 hourly, chart - if the current wave is a impulse wave 3, possibility of it moving till 200 to 260% of wave can't be ruled out.
Overall, quite bullish on Banknifty and looks like dips will be bought heavily
Happy Trading.
On weekly timeframe, Nifty has given one of the sharpest rally in recent history and the price pattern which it has formed is three while soldiers.
"The three white soldiers candlestick pattern suggests a strong change in market sentiment in terms of the stock, commodity or pair making up the price action on the chart. When a candle is closing with small or no shadows, it suggests that the bulls have managed to keep the price at the top of the range for the session. Basically, the bulls take over the rally all session and close near the high of the day for three consecutive sessions. In addition, the pattern may be preceded by other candlestick patterns suggestive of a reversal, such as a doji."
On weekly charts, as indicated earlier in my previous analysis of pitchfork view posted. BN took support at medial pitchfork line and made a weekly Morning star, with a Insider breakout as well and has been rallying since then
Also, on weekly charts BN in Oct 2021 after making a ATH, went into correction mode in falling channel and did almost 20% correction in 280 sessions and then after giving a falling channel BO in Aug 2022, it made a new ATH in Dec 2022. It moved around 20% in 50% of the time it took for correction from previous ATH i.e. 140 session.
Now, again after making a new ATH in Dec 2022, BN has corrected in falling channel for around 12% in around 120 sessions and last week it has given a falling channel BO, so if BO sustains - I am anticipating similar sort of 12% upsidee move run in 50% of the time it took for correction i.e. a potential that BN can hit 45K by Q2
In terms of Fibo, BN has closed above 61.8% retracement level of the correction from ATH to recent swing low of 38613.5 level. If price continue to sustain above 42K i.e. 61.8% fibo level, then possibility of BN touching the next Fibo level around 43K can't be ruled out even before giving significant pullback
In terms of Bands,BN brokedown 20Weekly MA in Jan'22 and then after 10 weeks of consolidation below it, it has again given a fresh breakout of 20 weekly MA. On previous such instance when it did same in July 2022 - it went on to make a new ATH in Dec'22
In terms of AVWAP, BN has been offlate facing resistance at avwap drawn from ATH levels and has now been trading above it. Previously it tried to close above the avwap levels in Dec 29th, but there wasn't any follow up candle which closed above the high of Dec 29th. This time two consecutive green closing with follow up candle closing above PDH. So, possibility of this avwap acting as a good support is high for positional view.
On daily charts, as posted earlier that it was traveling in falling channel
and finally gave a good breakout and has been so far moving well, with daily RSI inching towards 60+ overall momentum is very high
On 4 hourly, chart - if the current wave is a impulse wave 3, possibility of it moving till 200 to 260% of wave can't be ruled out.
Overall, quite bullish on Banknifty and looks like dips will be bought heavily
Happy Trading.
Note
For Monthly tf, somehow the original chart in TV analysis has not been posted correctly so posting it again with channel Note
On 4 hour chart, price hits exactly the fibo level marked ... Note
On 4 hour chart, index seems to be making flag & pole pattern while possibility of wave 4 ongoing right now. 
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