“BANK NIFTY” Index share price
BANK NIFTY Index share price has given a breakout at the resistance level which is at around 41600 to 41800.
On 10th November 2022, the Bank nifty gave gap down opening at around 41450, closed around 41600, and high made at 41640.
Even though it was a gap down the Banknifty now covered its previous day’s (9th November 2022) high and just closed to close its low point.
However, without covering the previous day’s (9th November 2022) high, on 11th November 2022, the bank nifty opened with a huge gap up at 42163 (previous close at 41603). Here, the bank nifty has given a break out to the resistance level.
Possibility for Next Price Movement.
It is too early to decide whether Bank nifty will move to the continued upside because bank nifty has just breakout the resistance.
The bank nifty has given inside closing on the last day after giving a breakout at resistance which means sellers are there.
Now here to confirm whether this level of resistance can become support, we have to wait for a few next trading sessions to see if the bank nifty sustain above at this resistance level.
If Bank nifty constantly remains above 42000 in the next few trading sessions then we can say yes it is a successful breakout.
Currently, there are a few levels on which we need to focus while trading/investing in the next few trading session, below are those key points.
- If the bank nifty opens above the previous high then either the same level can become resistant or have higher chances to move up, difficult to comment on what price it will move up because bank nifty has crossed its all-time high so now it is an open target.
- If the bank nifty opens within the previous candle then the resistance can be the previous high point. If the bank nifty consolidates more time at the previous high point then possible to give another breakout in a day.
- Chances are less but if bank nifty opens below the previous low point, possible that the 42150 level can act as resistance.
- If bank nifty opens below the previous low point possible that the bank nifty again goes into the consolidated zones which are between around 41600 to 41800.
- Somewhere around the 42150 level can act as immediate resistance.
- Somewhere around the 41650 level can act as immediate support.
In the below chart, we can understand the traders’/investors’ sentimental.
So looking at the previous 2 points which are at the same resistance level, we can sellers are getting activated which means sentimental here will be traders’/investors’ are trying to sell their assets around this level because of that the bank nifty fell the previous 2 times.
Hence, possible that such sentimental may get activated again and traders’/investors’ may try to sell their assets. If this happens then possible levels are given above for how the price reaction may act.
Here, as mentioned above to confirm the current break out we need to wait for the next few trading sessions to see if the bank nifty sustains above the 42000 level.
If the bank nifty getting bouncing back from around the 42000 level in the next few trading sessions then we can guess that bank nifty is now taking support around 42000 and confirms that resistance can now act as support.
(Disclaimer: The author’s views are just for informational purposes only, and they don’t represent advice on finances, investments, or anything else. Please do your research or discuss with your fund advisor before taking any action)
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