Presenting here is the monthly chart analysis of Bank Nifty.
1. Drawn is a channel with middle line is white dotted line.
2. Also drawn in white are the waves in white.
3. There could be difference of opinion in drawing Elliot Waves, but I clearly see 5 waves above middle white dotted line.
4. There is a continuous bull run over this middle line for the last 10 years i.e. from 2nd May 2013 as depicted by a white vertical line.
5.Below the chart, check that the Volume during Covid increased and is declining continuously since then and never picked up again.
6. Again William's percentage R is showing overbought position continuously because it is running above -30.
7. Check the last 5 monthly candles, showing a falling wedge.
8. Over the last 6 months you may see that some of the banking stocks fall and some go up unnecessarily. (In short, it seems index is being managed).
9. Cycle of stocks generally shows downfall from 25th December to March.
10. Elections are around the corner.
11. All these factors (not necessarily) but taken together are indicating a deep correction
at least till the level of arrow drawn.
Conclusion: Trade with caution.