Nifty Bank (BANKNIFTY) Targets post election 2024The chart provided is of the Nifty Bank Index on the 4-hour timeframe from NSE, created using TradingView. Here is a detailed analysis and summary:
Trend and Channel Analysis:
1. Ascending Channel: The chart shows the Nifty Bank Index moving within an ascending channel, bounded by two parallel trend lines.
2. Support and Resistance: The lower trend line acts as support, while the upper trend line acts as resistance. The price has bounced off the lower trend line multiple times, indicating strong support.
Fibonacci Retracement Levels:
The Fibonacci retracement levels are drawn from a recent swing low to a swing high, showing key levels of potential support and resistance.
1. 0% Level (48,333.10): The starting point of the retracement.
2. 50% Level (49,682.25): Often considered a strong support/resistance level.
3. 61.8% Level (50,000.70): Known as the golden ratio, it is a significant level where price action often finds support or resistance.
4. 100% Level (51,031.45): The end point of the retracement.
Key Levels and Potential Targets:
1. Current Price: The current price is 48,967.95, slightly below the 50% Fibonacci level of 49,682.25.
2. Immediate Support: Around 48,333.10 (0% Fibonacci level).
3. Immediate Resistance: Around 49,682.25 (50% Fibonacci level).
4. Next Key Resistance: Around 50,000.70 (61.8% Fibonacci level).
5. Further Resistance: Around 51,031.45 (100% Fibonacci level).
Future Projections:
1. Upside Potential: If the price breaks above the 50% Fibonacci level (49,682.25), the next target could be the 61.8% Fibonacci level (50,000.70), followed by the 100% Fibonacci level (51,031.45).
2. Downside Risk: If the price falls below the current level, it may find support at the 0% Fibonacci level (48,333.10).
Other Observations:
1. Volume and Momentum: Volume and other momentum indicators (not shown in the chart) would be helpful to confirm the strength of the trend.
2. Candlestick Patterns: Analysis of recent candlestick patterns could provide additional insights into market sentiment and potential reversals.
Summary:
- The Nifty Bank Index is currently in an ascending channel with key support and resistance levels defined by Fibonacci retracement.
- The price is slightly below the 50% retracement level, suggesting potential resistance.
- Breaking above this level could lead to further gains towards 50,000.70 and 51,031.45.
- Conversely, if the price falls, it may find support around 48,333.10.
Monitoring the price action around these key Fibonacci levels and the channel boundaries will be crucial for identifying potential trading opportunities.
