01 Feb & 31 Jan ’24 - N50 might look at BankNifty for directions

NSE:BANKNIFTY   Nifty Bank Index
BankNifty Analysis - Stance Neutral ➡️
BankNifty has made some interesting patterns on the 16mts TF. It looks like BN made quick surges to a specific price level and then cooled off softly. Much like a mini-flag pattern. BankNifty may be showing signs of going up if that is the case. We can only confirm if the next resistance of 47465 is broken - and if that happens tomorrow, then the game is set.
16mts chart
The biggest issue is the kind of selling the banks had from the FII’s basket. That factor is still haunting BankNifty pretty badly. The depth of the RED candles proves that point. When we have selling of that sort, we would need a strong response from the domestic buyers to go up. Meanwhile, if the DIIs are stalling - we may see further price corrections from here.

63mts chart
BankNifty is the go-to leader for directional trends, it should hold good in the current situation also. First, the BN has to move clearly in a direction, most likely Nifty will follow. BN still holds 38% of the weight on Nifty. For tomorrow we would like to start with a neutral stance and then adapt if Banks show some traction.


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