BankNifty Analysis for Today : Elliott Wave, Consolidation and Key Support Levels

BankNifty Analysis : Forming Inside Candle in Day Timeframe:

In today’s eventful trading session, the BankNifty chart displayed an interesting candlestick pattern called the inside candle. This particular pattern is worth noting as it indicates a consolidation phase in the market. The master candle, which was formed on July 4th, 2023, had a range between 45,000 and 45,655. It’s noteworthy that for the past two days, subsequent inside candles have been forming on the chart. This occurrence adds further intrigue and suggests that a potential breakout or significant move might be on the horizon. Till than we anticipate a range-bound market between the levels of 45000 and 45655 till it breaks either of the level.

Banknifty Future

BankNifty 30 Min Chart Analysis:

  • Impulsive (5)th wave in progress with sub 1-2-3-4-5 waves. currently sub wave 4 is in progress.
  • Wave 1: Started from 43,345, ended at 44,042 (approx. 700 points rally).
  • Wave 2: From 44,042 to 43,520 (approx. 500 points retracement).
  • Powerful Wave 3: Started from 43,520, reached 45,655 (approx. 1,100+ points rally).
  • Current 4th wave correction (Wave ABC) in progress till now low made 45042.
  • 50 EMA level near 45,115 expected to act as most important support.
  • If broken, the second support is around 44,840 (38.2% Fibonacci retracement level).
  • Corrective waves are time consuming.

Banknifty

Banknifty EOD Option Data Analysis:

  • Bank Nifty Options:
    • Put writers established strong support at 45,000.
    • Call writers created a hurdle at the 45,500 and 46000 level.
    • Max Pain level observed at 45300 level
  • Market analysis:
    • The market is range-bound between 45,000 and 45,500.
  • Market analysis:
    • PCR at 1.13

Banknifty

FII Buying Streak Indicates Positive Sentiment:

Today, FIIs purchased 2641.05 crore rupees worth of shares in the cash market and these Institutional Investors have been consistently buying shares in the cash market since June 27th, extending till today. This extended buying streak indicates confidence and a positive sentiment of big players.

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Top Gainers and Losers Reflect Mixed Performance in Banking Stocks:

Today’s Bank Nifty EOD analysis highlighted the good performance of banking stocks, with 10 banks closing positively and 2banks closing with losses.

HDFC Bank, Axis Bank , ICICI Bank,  and SBI stood out as the top gainers.

IndusInd Bank and Bandhan Bank faced downward pressure as the top losers.

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Conclusion:

  • Banknifty in Day Timeframe forming Inside candlestick pattern from last two days suggests a period of consolidation and market indecision.
  • The 30-minute chart analysis shows an ongoing impulsive (5)th wave with a corrective 4th sub wave in progress.
  • The 50-day Exponential Moving Average (EMA), located near 45,115, is expected to act as a support level.
  • Fibonacci retracement level of 38.2% comes at 44,840 is also expected to act as important support.
  • Upside
  • Fibonacci retracement level of 61.8% comes at 45,422 is the immediate resistance.
  • All Time high at 45655 is the next resistance.
  • The continuous buying streak by FIIs indicates a positive sentiment and confidence among institutional investors.
  • Option data reveals range bond market 45000 to 45500.
  • The Put-Call Ratio (PCR), a measure of market sentiment, has cooled down to 1.13, indicating a balanced outlook.
  • Market is “Buy on Dip” mode.
  • For Live Market update : Live Update

Risk Management:

  • Trading in financial markets involves inherent risks, and caution should be exercised.
  • Traders should conduct thorough analysis, set stop

Disclaimer: The information presented in this article is for educational and informational purposes only. It should not be considered as financial or investment advice. Trading in the financial markets carries risks, and individuals should seek professional guidance and conduct their own research before making any investment decisions. The author and the platform assume no responsibility for any financial losses or damages incurred as a result of following the information provided in this article.

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