- 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.
- 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.
- 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. 🎉
From WaveTalks Market Whispers - Can Hear Them! Abhishek