Based on the charts and the market's performance on Thursday, October 16, the Bank Nifty experienced an extremely strong bullish breakout, confirming the continuation of its primary uptrend and putting the all-time high in sight.
Detailed Market Structure Breakdown
4-Hour Chart (Macro Trend)
Structure: The Bank Nifty is in a high-conviction bullish trend. The price has decisively broken out above the major supply zone of 56,700 - 57,000 and is now moving aggressively toward the historical all-time high zone. The large bullish candle on the 4H chart confirms that the consolidation phase is over, and the market is in a momentum-driven rally.
Key Levels:
Major Supply (Resistance): 57,500 - 57,750. This area represents the previous all-time high zone and is the immediate target.
Major Demand (Support): 56,700 - 57,000. This area, which was the critical resistance, is now the new must-hold demand zone for the bulls.
Outlook: The short-term bias is aggressively bullish. The market is poised to challenge and potentially surpass its all-time high.
1-Hour Chart (Intermediate View)
Structure: The 1H chart shows a clear Break of Structure (BOS) on the upside and the resumption of the primary steep ascending channel. The price made a strong move, leaving behind a small FVG (Fair Value Gap) in the 57,000 - 57,200 region, which could act as a bounce-back zone.
Key Levels:
Immediate Resistance: 57,500 (Upper channel trendline/ATH attempt).
Immediate Support: 57,200 (Upper boundary of the FVG/consolidation).
15-Minute Chart (Intraday View)
Structure: The 15M chart confirms the powerful bullish momentum. The price closed near the top of the steep ascending channel. There are no signs of weakness at the close, suggesting continuation is likely.
Key Levels:
Intraday Supply: 57,500 - 57,600.
Intraday Demand: 57,200.
Outlook: Aggressively Bullish.
📈 Trade Plan (Friday, 17th October)
Market Outlook: The Bank Nifty is displaying aggressive momentum and is on a clear trajectory toward the all-time high. The primary strategy remains buy on dips.
Bullish Scenario (Primary Plan)
Justification: The market is technically strong and leading the rally. Strong buying is expected to continue until the ATH zone is reached.
Entry: Long entry on a decisive break and 15-minute candle close above 57,600 (a sustained break of ATH) OR look for a dip entry near 57,200 (the immediate FVG/demand zone).
Stop Loss (SL): Place a stop loss below 56,900 (below the major breakout level).
Targets:
T1: 57,750 (New historical high).
T2: 58,000 (Psychological target).
Bearish Scenario (Counter-Trend Plan)
Justification: High-risk. Only valid if the rally fails dramatically after hitting the ATH zone or if major unexpected news hits.
Trigger: A decisive break and 1-hour candle close below 56,700.
Entry: Short entry below 56,700.
Stop Loss (SL): Above 57,000.
Targets:
T1: 56,400 (Previous resistance, now support).
T2: 56,200 (Lower channel support).
Key Levels for Observation:
Immediate Decision Point: 57,200 - 57,600 zone.
Bullish Confirmation: A break and sustained move above 57,600.
Bearish Warning: A move below 56,900 suggests a major reversal.
Line in the Sand: 56,700. Below this level, the short-term bullish momentum is lost.
Detailed Market Structure Breakdown
4-Hour Chart (Macro Trend)
Structure: The Bank Nifty is in a high-conviction bullish trend. The price has decisively broken out above the major supply zone of 56,700 - 57,000 and is now moving aggressively toward the historical all-time high zone. The large bullish candle on the 4H chart confirms that the consolidation phase is over, and the market is in a momentum-driven rally.
Key Levels:
Major Supply (Resistance): 57,500 - 57,750. This area represents the previous all-time high zone and is the immediate target.
Major Demand (Support): 56,700 - 57,000. This area, which was the critical resistance, is now the new must-hold demand zone for the bulls.
Outlook: The short-term bias is aggressively bullish. The market is poised to challenge and potentially surpass its all-time high.
1-Hour Chart (Intermediate View)
Structure: The 1H chart shows a clear Break of Structure (BOS) on the upside and the resumption of the primary steep ascending channel. The price made a strong move, leaving behind a small FVG (Fair Value Gap) in the 57,000 - 57,200 region, which could act as a bounce-back zone.
Key Levels:
Immediate Resistance: 57,500 (Upper channel trendline/ATH attempt).
Immediate Support: 57,200 (Upper boundary of the FVG/consolidation).
15-Minute Chart (Intraday View)
Structure: The 15M chart confirms the powerful bullish momentum. The price closed near the top of the steep ascending channel. There are no signs of weakness at the close, suggesting continuation is likely.
Key Levels:
Intraday Supply: 57,500 - 57,600.
Intraday Demand: 57,200.
Outlook: Aggressively Bullish.
📈 Trade Plan (Friday, 17th October)
Market Outlook: The Bank Nifty is displaying aggressive momentum and is on a clear trajectory toward the all-time high. The primary strategy remains buy on dips.
Bullish Scenario (Primary Plan)
Justification: The market is technically strong and leading the rally. Strong buying is expected to continue until the ATH zone is reached.
Entry: Long entry on a decisive break and 15-minute candle close above 57,600 (a sustained break of ATH) OR look for a dip entry near 57,200 (the immediate FVG/demand zone).
Stop Loss (SL): Place a stop loss below 56,900 (below the major breakout level).
Targets:
T1: 57,750 (New historical high).
T2: 58,000 (Psychological target).
Bearish Scenario (Counter-Trend Plan)
Justification: High-risk. Only valid if the rally fails dramatically after hitting the ATH zone or if major unexpected news hits.
Trigger: A decisive break and 1-hour candle close below 56,700.
Entry: Short entry below 56,700.
Stop Loss (SL): Above 57,000.
Targets:
T1: 56,400 (Previous resistance, now support).
T2: 56,200 (Lower channel support).
Key Levels for Observation:
Immediate Decision Point: 57,200 - 57,600 zone.
Bullish Confirmation: A break and sustained move above 57,600.
Bearish Warning: A move below 56,900 suggests a major reversal.
Line in the Sand: 56,700. Below this level, the short-term bullish momentum is lost.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.