BankNifty - 3000+ Points Fall With A Simple Trendline?

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BankNifty Analysis

Current Scenario:

- As discussed earlier, the rising trendline has been limiting the upside movement since the RBI Policy announcement on 6th Dec 2024
- The price is the primary indicator; economic news often lags behind price action. Elliott Wave Analysis highlights this effectively, using channels and trendlines as key tools.
- BankNifty is currently in a complex correction phase, experiencing a significant 3000-point fall from recent highs.
- Failed to hold 52600 which was important support level

Last BankNifty Idea - 6th Dec 2024

Support and Resistance Zones:

- Support Zones: 51150 – 50900
- Resistance Zones: Gap zone 51775 – 52000


Short-Term Trading Strategy:

1. Intraday Opportunities:
- If the gap zone (51775–52000) is filled, it will act as resistance. Traders should look for potential halts in the rally started from the 50609 lows.
- Watch for a pullback to the support zone (51150–50900) for possible buy setups.
2. Buying Opportunities:
- If the index holds above 50609 lows, look for opportunities to ride the upside towards the channel highs, where resistance is expected.
- Monitor price action near these critical zones to confirm your trade setups.


Outlook:

Santa Rally
- The much-anticipated "Santa Rally" may bring relief to domestic and global markets if the index manages to sustain above its support zones.

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Nifty Analysis

Current Scenario:

- Nifty has a positive bias as long as it holds above 23500.
- A breakout above 24180 will confirm the uptrend, paving the way for a move towards 24800 and potentially the 25000+ zone.

Support and Resistance Zones:

- Support Zone: 23500
- Resistance Zones: 24180, 24800, and 25000+

Short-Term Trading Strategy:

1. Upside Confirmation:
- A decisive move above 24180 could signal a buying opportunity for short-term traders, targeting 24800 and beyond.
2. Caution at Higher Levels:
- Traders should exercise caution near 25000+ levels as FIIs return from vacation, which may introduce volatility.

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Final Thoughts:

- Both indices are presenting potential short-term trading opportunities if key support and resistance levels are respected.
- Always use risk management strategies and avoid chasing moves without confirmation.

Wishing everyone a Happy and Prosperous New Year 2025! May your trades be profitable and your goals achieved. 🎉




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