Tomorrow Banknifty Prediction : will bull fight back ?

In this article, we will explore a detailed BankNifty Analysis and  Tomorrow Banknifty Prediction , examining the current market conditions and potential future movements.

In the weekly timeframe, BankNifty has recently formed a Dragonfly Doji candlestick pattern, with a range of 45,655 to 44,845. This formation has the potential to shift the market sentiment towards the selling side. Throughout this week, we have observed that every rise in BankNifty’s price has been met with selling pressure, resulting in a low of 44,562. As we approach the last day of the week, the bulls will likely attempt to fight back and close above the crucial level of 44,950-45,000, potentially failing the bearish pattern.

Analyzing BankNifty on the 30-minute chart

BN 30min chart 13 july 2023

Shifting our focus to the 30-minute chart, The wave structure suggests that we are currently in sub-wave 4 of wave 5. Sub-wave 4 is a corrective wave characterized by a zigzag pattern known as wave ABC-X-ABC , which is also called double correction. Corrective waves can be time-consuming in nature. Typically, this corrective wave corrects to a minimum of 38% Fibonacci retracement, which is at 44,839, and a maximum of 61.8% Fibonacci retracement, which is at 44,335.

our analysis reveals that BankNifty is currently moving within a downside channel with zigzag move namely ABC-X-ABC within sub wave 4 of wave 5. Near the channel resistance, it faces selling pressure, while near the channel support, it experiences short covering.  If you want to assess the profitability of the fourth wave for professional traders, you can examine the Trade History. Corrective waves provide traders with opportunities on both sides of the market by leveraging support and resistance levels.

Recent Price Decline and Tomorrow Banknifty Prediction:

Today Banknifty closed at 43665. In recent times, BankNifty has witnessed a noticeable decline, dropping from its peak at 45,655 to 44,562.40 (-2.39%). However, adhering to the wave principle, there is still potential for an upward movement yet to unfold, with a target of 46,000. Traders can utilize the reverse Fibonacci levels of the previous sub-wave (3) to (4) as reference points to establish targets following the breakout of the corrective channel. These targets encompass the levels of 45,200, 45,655, and 46,000.

For tomorrow, the key level on the downside is the 200-day simple moving average (SMA) at 44,616. If this level is broken, the next significant support is near the 61.8% Fibonacci retracement level around 44,335. On the upside, the channel resistance is located near 45,000, with point of control (POC) resistance near 45,200. As we approach the last day of the week, the bulls will likely attempt to fight back to fail the Dragonfly Doji Pattern of last week.

“Elliott Wave Theory teaches us to ride the waves of market sentiment, understanding that trends are not random but follow a predictable pattern.” and Today, experienced traders witnessed the same phenomenon in the live market, as history repeated itself on July 11, 2023, and again on July 13, 2023, with exactly the same price action and timing.

Stay tuned for Live market  updates and insights on the latest market trends. We will provide further updates on this in too.

Also read : GIFT Nifty: Explore the Key Changes and Impact on Traders in the SGX Nifty Transition

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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