The Bank Nifty index is poised for a potential all-time high (ATH) in the fourth week of May 2025, possibly surpassing its previous peak of 56,200. This bullish momentum is supported by recent technical indicators, such as a golden crossover (50-day EMA crossing above 200-day EMA) and a breakout from long trendlines, signaling strong upside potential. Positive sentiment is driven by factors like improved credit growth, falling bond yields, and robust quarterly earnings from major banks, with institutional buying (FIIs and DIIs) adding strength to the rally.
However, caution is warranted. The index is trading near overbought levels, with key indicators suggesting a possible temporary pullback or consolidation. A sharp decline, similar to the one seen in June 2024, is a risk, potentially driving the index toward 51,385, with support at 50,600. A gap around these levels may be filled, offering temporary support, but a break below could see the index test 48,049. There are warning of a potential 50% crash, citing historical patterns where ATHs preceded major corrections.
Key Levels to Watch:
Resistance: 55,939–56,300 (near ATH).
Support: 54,771, 50,600, 48,049.
Risk: Overbought conditions and historical crash patterns.
Traders should remain vigilant, using dips as buying opportunities but setting stop-losses to manage downside risks. Always consult professional advice before trading, as market movements are subject to high volatility
However, caution is warranted. The index is trading near overbought levels, with key indicators suggesting a possible temporary pullback or consolidation. A sharp decline, similar to the one seen in June 2024, is a risk, potentially driving the index toward 51,385, with support at 50,600. A gap around these levels may be filled, offering temporary support, but a break below could see the index test 48,049. There are warning of a potential 50% crash, citing historical patterns where ATHs preceded major corrections.
Key Levels to Watch:
Resistance: 55,939–56,300 (near ATH).
Support: 54,771, 50,600, 48,049.
Risk: Overbought conditions and historical crash patterns.
Traders should remain vigilant, using dips as buying opportunities but setting stop-losses to manage downside risks. Always consult professional advice before trading, as market movements are subject to high volatility
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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.