BANKNIFTY couldn’t sustain above 51000 levels! What’s next?
The recent breach of the 51,000 psychological level and important demand zone in BANKNIFTY suggests a potential downward trend. Here are some key points to consider regarding the next support levels:
1. **Immediate Support Levels**:
- **49,700**: This level is highlighted as a critical support zone by several analysts. A break below this level could intensify the prevailing weakness.
- **49,650**: This is another significant support level, as it represents a previous swing low that the index defended in recent sessions.
2. **Key Resistance Levels**:
- **50,900**: This level is identified as a strong resistance zone. If BANKNIFTY crosses and sustains above this level, it could witness buying, leading the index toward 51,250-51,500 levels.
3. **Market Sentiment**:
- The current sentiment suggests that if BANKNIFTY breaks above 50,000, it could see sharp short covering towards 50,500/51,000 levels.
- The undertone remains bullish, and traders are advised to adopt a buy-on-dip approach with support at 49,000.
4. **Option Chain Analysis**:
- The highest open interest is built up on the call side at 50,000, indicating that call writers are defending this level.
Given these points, the next important support level after breaching 51,000 is indeed around 49,700, which aligns with previous swing lows and is a critical demand zone. The index's behavior around these levels will be crucial in determining its short-term direction.
1. **Immediate Support Levels**:
- **49,700**: This level is highlighted as a critical support zone by several analysts. A break below this level could intensify the prevailing weakness.
- **49,650**: This is another significant support level, as it represents a previous swing low that the index defended in recent sessions.
2. **Key Resistance Levels**:
- **50,900**: This level is identified as a strong resistance zone. If BANKNIFTY crosses and sustains above this level, it could witness buying, leading the index toward 51,250-51,500 levels.
3. **Market Sentiment**:
- The current sentiment suggests that if BANKNIFTY breaks above 50,000, it could see sharp short covering towards 50,500/51,000 levels.
- The undertone remains bullish, and traders are advised to adopt a buy-on-dip approach with support at 49,000.
4. **Option Chain Analysis**:
- The highest open interest is built up on the call side at 50,000, indicating that call writers are defending this level.
Given these points, the next important support level after breaching 51,000 is indeed around 49,700, which aligns with previous swing lows and is a critical demand zone. The index's behavior around these levels will be crucial in determining its short-term direction.
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