Technical Analysis of Nifty Bank Index
Support & Resistance Levels:
Resistance: Around 49,053 (Fib 0.382 level) – This is the upper red zone where the price is facing rejection.
Support:
48,904 (Fib 0.618 level) – Immediate support zone.
48,798 (Fib 0.786 level) – Strong support level (green zone).
Technical View:
Fibonacci Levels: The price is trading around the Fib 0.618 level (48,904). If it breaks below this, 48,798 is the next key support.
RSI Indicator (Relative Strength Index):
RSI is currently around 36, which indicates weak momentum but is approaching an oversold region (<30). A bounce could happen from lower levels.
Price Action:
The price is consolidating inside a range (green zone).
A breakdown below 48,798 can lead to further selling pressure.
A breakout above 49,053 will be bullish.
Trade Setup:
Buy (Long Entry): If the price sustains above 48,904 or rebounds from 48,798.
Target (TGT): 49,053 (first target), 49,200+ (if breaks resistance).
Stop-Loss (SL): 48,780 (below Fib 0.786).
Sell (Short Entry): If price breaks below 48,798 with strong volume.
Target (TGT): 48,600 – 48,500.
Stop-Loss (SL): 48,950 (above resistance).
Decision – Buy, Sell, or Hold?
Hold if already in a position, watching for a breakout.
Buy if the price rebounds from support 48,798 - 48,904 with RSI moving up.
Sell if the price breaks below 48,798 with strong selling volume.
Nifty Bank Index - Short, Medium & Long-Term View
📌 Short-Term View (Intraday to 1 Week)
Current Trend: Weak, trading near support levels.
Support: 48,798 (Fib 0.786 level)
Resistance: 49,053 (Fib 0.382 level)
RSI: Near oversold (36), potential bounce if support holds
Trade Setup:
Bullish Bias: Buy above 48,904, target 49,053+, SL 48,780
Bearish Bias: Sell below 48,798, target 48,600, SL 48,950
View: Neutral to slightly bearish unless price bounces from support.
📌 Medium-Term View (1 Week to 1 Month)
Trend: Consolidation with a bearish bias.
Price Range: 48,800 - 49,200 (Range-bound movement)
Breakout Levels:
Bullish breakout above 49,200 → Target 49,500 - 49,700
Bearish breakdown below 48,798 → Target 48,500 - 48,300
View: Wait for a breakout; bullish above 49,200, bearish below 48,798.
📌 Long-Term View (1 Month to 6 Months+)
Trend: Weakness from recent highs, forming lower highs.
Major Support: 48,500 (If broken, deeper correction expected)
Major Resistance: 49,500 - 50,000
Indicators:
RSI Near 40: Needs strength for long-term bullish momentum.
Volume: Low, signaling indecision.
Long-Term Strategy:
Bullish if above 49,500 → Target 50,000+
Bearish if below 48,500 → Target 48,000 - 47,500
🔍 Final Conclusion:
✅ Short-Term: Range-bound, watch for breakout.
✅ Medium-Term: Neutral, bullish above 49,200, bearish below 48,798.
✅ Long-Term: Needs strength; bullish only above 49,500.
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