Today BankNifty Prediction : Dragonfly Doji candlestick reversal patterns

In this comprehensive article, we will provide an in-depth BankNifty prediction and analysis for tomorrow, focusing on the powerful Dragonfly Doji candlestick reversal patterns. By examining the weekly timeframe, day timeframe, and hourly timeframe, we will uncover key insights to assist traders in making informed decisions. Join us as we delve into the world of BankNifty and explore the potential for profitable trades.

Weekly Timeframe : Rising Wedge Pattern with Dragonfly Doji

At the beginning of our analysis, we turn our attention to the weekly timeframe. Here, we observe the emergence of a notable development – the formation of a Dragonfly Doji candlestick pattern . Positioned at the top of an uptrend, this pattern serves as a strong reversal signal. Its appearance suggests a potential shift in market sentiment. Traders should closely monitor dragonfly doji’s range that is 45655 to 44845 for reversal.

Banknifty weekly dragonfly doji

Secondly In the weekly timeframe, we observe the formation of a rising wedge pattern.  It is important for traders to note that this pattern is occurring in the longer-term weekly timeframe and slowly and gradually range will narrow down till it gives breakout or breakdown from the pattern.

Banknifty rising wedge

Day Timeframe: Master Long-legged doji Candle Breakdown

Moving to the day timeframe, we analyze the significant events of July 4th, 2023. On this day, BankNifty formed a master long-legged doji candle with a range between 45000 and 45655. However, the bullish momentum was disrupted on July 7th, 2023, as the master candle broke down, reaching a low of 44845. This breakdown indicates a temporary disruption in the previously prevailing bullish momentum.

Banknifty Day doji breakdown

30min Timeframe: Elliott Wave Structure and  Potential Reversal

Banknifty is currently moving in downside channel. In the current wave structure , we are within sub-wave 4 of wave (5).  Sub-wave 4 is a corrective wave characterized by a zigzag pattern, denoted as wave ABC. Typically, this corrective wave corrects to a minimum of 38% Fibonacci retracement , which stands at 44839, and a maximum of 61.8% Fibonacci retracement, which stands at 44335.

At present, BankNifty has already reached a low of 44845, indicating that subwave 4 has completed the minimum required correction. This suggests the potential for a reversal from either the 38% Fibonacci level or the 61.8% Fibonacci level.

Banknifty elliott 30min

  • Impulsive (5)th wave in progress with sub 1-2-3-4-5 waves. currently sub wave 4 is in progress.
  • Banknifty Friday closed at 44897 level.
  • 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. 2,100+ points rally).
  • Current 4th sub wave achieved minimum target of 38% fib retracement near 44845 (approx 810 points)
  • Max 4th sub wave retracement can be upto 61.8% fib level near 44335 (major support)
  • 200 sma support near 44300
  • 50 EMA resistance level near 45,060
  • Corrective waves are time consuming.
  • Banknifty volume profil suggest POC level near 45200 act as immediate resistance

Banknifty volume

Banknifty Option chain : Highly oversold

  • Bank Nifty Options:
    • Call writers established strong resistance zone at 45,000 – 45300
    • Put writers created a support at the 44,700 and 445000 level.
    • Max Pain level observed at 44800 level
  • Market analysis:
    • The market is highly oversold be cautious at lower level.
  • Market analysis:
    • PCR at 0.70

Banknifty option chain

Conclusion and banknifty Prediction

  • Higher timeframe signals caution at higher level being dragonfly doji  in weekly timeframe, resistance 45500-45655.
  • In Day timeframe low of long legged doji candle brokendown singals temporary pause in bullish momentum.
  • Lower timeframe 30 min  signals  Potential reversal from 38% fib level or 61.8% fib level
  • Important support of 200 sma confluence with 61.8% fibonacci level near 44300.
  • PCR highly oversold so be cautious at lower level.
  • No shorting near channel support or fib support when PCR is oversold.
  • “sell on rise” If during intraday selling pressure seen near 45100-45200.
  • Buying can  be done near channel support 44700 or 44500 with bullish candle confirmation.
  • 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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