Technical Analysis of Nifty Bank Index (Based on Chart)
1. Support & Resistance Levels:
Resistance Zone: The red-shaded region around 48,574.90 and 48,518.40 represents a key resistance level. The price has struggled to sustain above this area multiple times.
Support Zone: The green-shaded region around 48,286.15 and 48,334.00 represents a crucial support level. Price previously bounced from this area, indicating buying interest.
2. Fibonacci Retracement Analysis:
38.2% Level (48,574.90): This level acted as a resistance where the price faced selling pressure.
50% Level (48,518.40): A key retracement level where price often consolidates before making a move.
61.8% Level (48,450.25 - 48,420.70): Currently, the price is testing this golden ratio, a crucial decision point for traders. A breakdown could push the price lower.
78.6% Level (48,286.15): If 61.8% is broken, the next potential support is this level.
3. Momentum Indicator (RSI):
RSI is currently below 40, indicating weak momentum. If RSI falls below 30, the market is oversold and may see a bounce.
Recent RSI peaks show a downward trend, signaling bearish pressure.
4. Target & Stop-Loss Considerations:
Bullish Scenario (Long Trade):
Entry: If price holds above 48,420.70 (61.8% Fibonacci level)
Target 1: 48,518.40 (50% Fibonacci level)
Target 2: 48,574.90 (38.2% Fibonacci level)
Stop-Loss: Below 48,286.15
Bearish Scenario (Short Trade):
Entry: If price breaks below 48,420.70
Target 1: 48,286.15 (78.6% Fibonacci level)
Target 2: 48,200 (next psychological support)
Stop-Loss: Above 48,518.40
Conclusion:
If the price sustains above 61.8% Fib level, expect an upside move toward 50% and 38.2%.
A breakdown below 48,420 could lead to a further decline towards 48,286 and lower levels.
RSI suggests a potential oversold bounce if it moves below 30.
Nifty Bank Index Analysis (Short-Term, Medium-Term, Long-Term Outlook)
1️⃣ Short-Term View (Intraday to 1 Week) 📉📈
🔹 Current Trend: Bearish to Neutral (price at 61.8% Fibonacci level)
🔹 Key Support: 48,420 - 48,286
🔹 Key Resistance: 48,518 - 48,574
🔹 Indicators: RSI is below 40, indicating weak momentum.
🔹 Trade Setup:
Bearish Bias: If price breaks 48,420, it may drop toward 48,286 (short-term support).
Bullish Reversal: If it sustains above 48,420, it may test 48,518 - 48,574.
🔹 Short-Term Strategy:
Short below 48,420, Target: 48,286, SL: 48,518
Long above 48,574, Target: 48,700+, SL: 48,450
2️⃣ Medium-Term View (1 Week to 1 Month) 🏹
🔹 Trend: Neutral to Bullish if 48,420 holds as strong support.
🔹 Fibonacci Levels:
If price bounces, it may aim for 48,800 - 49,000
A breakdown could push it toward 48,000 - 47,800
🔹 Medium-Term Strategy:
Bullish above 48,600, Target: 49,000+, SL: 48,400
Bearish below 48,286, Target: 48,000, SL: 48,500
3️⃣ Long-Term View (1 Month to 6 Months) 🚀
🔹 Trend: Bullish Above 48,500 | Bearish Below 48,000
🔹 Technical Structure:
Higher highs needed above 49,000 for a breakout.
If 48,000 breaks, it may test 47,500 - 47,000 as deeper support.
🔹 Long-Term Strategy:
Bullish: If it sustains above 49,000, next target 50,000+
Bearish: If 47,500 breaks, expect 46,500 - 46,000
📌 Final View:
Short-Term: Watch 48,420, a crucial level.
Medium-Term: Bullish if 48,600 holds, bearish below 48,286.
Long-Term: Needs 49,000+ for a strong uptrend.
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