In the previous week, bank nifty has lost -2027.3 (-6.17%) points, and according to this technical chart, it will keep falling after a short reversal. Because as per the Elliott wave theory, an impulsive wave ended at the 5th wave, and a corrective wave has started.
In the last trading session, it has created an opening gap, and also breakdown the strong support trendline.
There's no divergence signal though the Stoch RSI for a potential price reversal, and It's indicating a bearish trend ahead in daily & weekly time frame.
Bank Nifty can find strong support at the 50% retracement level only. At present, it's at 38.20% of the retracement level, and a breakout of this level means the price can start collapsing for 21160 (TP1) - 20160 (TP2) levels.
Please note you should not sell above to B of the bearish cycle. Technically, this is a green sign for a new bullish trend for long-term investors.
(Here I have separated the impulsive wave & corrective wave through a grey verticle line.)
If you have any questions regarding this bank nifty analysis, ask me by the comment section of TradingView OR for instant help, use the PC option.
In the last trading session, it has created an opening gap, and also breakdown the strong support trendline.
There's no divergence signal though the Stoch RSI for a potential price reversal, and It's indicating a bearish trend ahead in daily & weekly time frame.
Bank Nifty can find strong support at the 50% retracement level only. At present, it's at 38.20% of the retracement level, and a breakout of this level means the price can start collapsing for 21160 (TP1) - 20160 (TP2) levels.
Please note you should not sell above to B of the bearish cycle. Technically, this is a green sign for a new bullish trend for long-term investors.
(Here I have separated the impulsive wave & corrective wave through a grey verticle line.)
If you have any questions regarding this bank nifty analysis, ask me by the comment section of TradingView OR for instant help, use the PC option.