Nifty Bank - Downward Breakout Confirmation?

Jan 19, 2024

Key Points:

• Nifty Bank currently at 46000, a key resistance area.
  
• Previous attempt to break resistance resulted in sideways consolidation (distribution phase).
  
• Recent breakdown with volume suggests potential bearish continuation.
  
• Wait for pullback towards 46300 for confirmation and short entry.
  

Technical Analysis:

• Resistance zone around 46000 previously tested and failed.
  
• Sideways movement for months indicates distribution of holdings.
  
• Breakout with volume on the downside confirms bearish momentum.
  

Strategy:

Bearish:

• Enter short position if Nifty Bank pulls back to 46300 with confirmation (e.g., bearish candlestick pattern).
  
• Set stop-loss above 46600 to limit potential losses.
  
• Target initial downside levels at 45400 and 44800.
  

Neutral:

Wait for further confirmation of the breakdown before taking a position.
Monitor price action and volume to assess strength of bearish momentum.

Disclaimer:

This is for informational purposes only and not financial advice.
Always do your own research before making investment decisions.