Bank Nifty Update

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 Bank Nifty daily chart


Bank Nifty 2 hour chart


Analysis

As shown in the above daily chart, prices continue to face the resistance of 41600 levels where it was first taking support. At present, just like Nifty it is forming a rising wedge pattern which once complete will open negative possibilities. Please understand prices are in a downtrend as the rising channel pattern is broken thereby opening negative possibilities. ADX is also not picking up indicating that the recent upmove is weak.

From 120 mins chart, prices are moving in a very narrow range. So I have applied Bollinger Bands which also shows that it is narrowing and there is a high possibility for the breakout to emerge, which is above or below the bands. MACD is trend less as there is no clear signal maintained by the oscillator.

As per Elliott Wave theory, prices are moving in wave ii of wave c where wave c is still in making. It looks  to be ending diagonal pattern in wave c and once it is complete and prices break below 41280 levels (lower Bollinger Band) the index will then sink towards 35600-35400 price range.

An interesting observation is in Bank Nifty, esp in wave c of wave ii, the ongoing wave is taking more time then wave b of wave ii, surely hinting that upside is capped and downside is all open. Be cautious on the long side and maintain your stoploss. Once index starts shedding all the gains there will be bloodbath in the market.

The summation is Nifty Bank will falter towards 35600-35400 which I had mentioned earlier with resistance at 42700 levels.

If you want to read my previous article on Nifty Bank where I had mentioned these levels on the downside, click on the below link

https://www.marketanalysiswithmeghmody.com/2023/02/nifty-bank-elliott-wave-analysis.html

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