What Banknifty Chart Trying To Say?

Friends, everyone knows and seeing as the market hitting lifetime high back to back. The market has recovered all sell-off of lockdown and now showing strength for the long term. If we compare Nifty and Banknifty, then the bank index has taken too much time to cross its lifetime high i.e. 2+ months. That means all major banks are overbought and it is a time of profit booking. As per chart analysis, Banknifty has given bearish confirmation on a daily plus weekly time frame. Let’s see in dip analysis.

Technical Overview of Nifty: On the daily chart, nifty shows some zic-zac and this zic-zac means Double Top. In the last two days, nifty has shown a fall of 350 points and the next support is around 14300. There are two supports on a chart that is previous Higher-Low and 20 DMA. If it sustains and bounces from the same levels then there are chances of a fresh rally.

On a weekly chart, two Doji has formed i.e. neutral sentiments at a lifetime high, so rally or fall can come. Let’s hope for the best and prepare for the worst.

Technical Overview of Nifty Bank: Come to the banknifty chart, it has taken resistance from a lifetime high. On the last trading session banknifty has shown a fall of 1000 points. Also given breakdown confirmation of Double Top and broken down 20 DMA. As we discussed above banks are ready for profit booking and the index has given negative confirmation on the chart.

On the weekly chart, Evening Star near resistance. What is that mean? What index trying to say?

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----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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