Bank Nifty - Long Term Analysis

4 окт. 2023 г.

Technical Analysis:

Bank Nifty down by over a percent today, it led me to analyse its long term charts and what I see is not that great (P.S-I am not an expert)

Let's start with the big question, is it forming a Rising Wedge?
It clearly looks like plus it has tested the resistance for over 6 years now.

Now talking about the weekly chart of bank nifty, it looks like it is forming a double top and although now it is around the support level but it looks that it can be easily broken.
The worst would be when the rising wedge breakdown confirms

On the Monthly chart there has been a bearish engulfing followed by a shooting star (both Bearish) and this month has confirmed the bearishness so far.

Also I analysed the sector charts of both private and public banks, and private banks charts looks similar to the bank nifty (double top) bearish - considering bank nifty % is dominated by the pvt banks coz of market cap. Now Public banks have given massive wealth to the retailers and now is around its all time high, also it has been one side rally so not a lot of consolidation and is around the supply zone or resistance. Another negative point.

I have also marked a support level to which it can come down plus you can consider 200 MA on weekly as another support

Fundamentally banks have been performing well on many parameters and will continue to do so but it feels like the time when there will be massive profit booking specially from FII's as their accounts get closed by the end of December unlike ours end of march.

This is not a trading call, just my analysis. So be cautious if you trade.

Would love to know your comments if you agree or disagree, here to learn and understand your point of view