Bank Nifty Pre-Market Analysis, Monday November 20th, 2023,
Will Banknifty continue to fall?
On November 17th, the Bank Nifty commenced trading with a downward gap, a consequence of the Reserve Bank of India's decision to elevate risk weight on consumer credit exposure. The index concluded the session beneath the 20-day Exponential Moving Average (EMA), registering a decline of 578 points, equivalent to 1.31%, settling at 43,584. The daily charts depicted a bearish candlestick characterized by a notable upper shadow.
Presently, the index stands approximately 300 points adrift from the 200-day EMA situated at 43,294. On the weekly scale, a similar bearish candle manifested, reflecting the persistent underperformance of banking stocks. Strategic analysis indicates that a decisive breach and sustained position above the 43,750 level are imperative for a potential rebound towards 44,044, followed by 44,250. Conversely, failure to maintain such levels could usher in weakness, with potential downward movements towards 43,333 and 43,000 levels.
According to the pivot point calculator, pivotal support is anticipated at 43,520, followed by 43,435 and 43,298. Conversely, resistance levels are envisaged at 43,794 initially, followed by 43,879 and 44,016.
BankNifty daily chart managed to make a descending triangle which further supports the bearish trend. Anyways, BN has to break and sustain the trendline to make a smarter move towards the ATH.
In conclusion, the current market dynamics suggest a critical juncture for the Bank Nifty, necessitating a keen observance of key support and resistance levels to ascertain potential directional movements.
On November 17th, the Bank Nifty commenced trading with a downward gap, a consequence of the Reserve Bank of India's decision to elevate risk weight on consumer credit exposure. The index concluded the session beneath the 20-day Exponential Moving Average (EMA), registering a decline of 578 points, equivalent to 1.31%, settling at 43,584. The daily charts depicted a bearish candlestick characterized by a notable upper shadow.
Presently, the index stands approximately 300 points adrift from the 200-day EMA situated at 43,294. On the weekly scale, a similar bearish candle manifested, reflecting the persistent underperformance of banking stocks. Strategic analysis indicates that a decisive breach and sustained position above the 43,750 level are imperative for a potential rebound towards 44,044, followed by 44,250. Conversely, failure to maintain such levels could usher in weakness, with potential downward movements towards 43,333 and 43,000 levels.
According to the pivot point calculator, pivotal support is anticipated at 43,520, followed by 43,435 and 43,298. Conversely, resistance levels are envisaged at 43,794 initially, followed by 43,879 and 44,016.
BankNifty daily chart managed to make a descending triangle which further supports the bearish trend. Anyways, BN has to break and sustain the trendline to make a smarter move towards the ATH.
In conclusion, the current market dynamics suggest a critical juncture for the Bank Nifty, necessitating a keen observance of key support and resistance levels to ascertain potential directional movements.
Comment:
Possibility for a cap and handle