Recent Price Action: Bank Nifty recently experienced a structural shift by breaching the 47,800 level. Currently, the index trades within the resistance zone of 48,119 - 47,940. This zone can be interpreted as a liquidity sweep area where supply and demand forces may find equilibrium, potentially leading to a retracement. However, a sustained break above 48,120 could signal strong buying pressure, indicating buyers' willingness to absorb supply and push prices higher.
Trading Plan for April 24, 2024:
Gap Up Opening Above 48,100:
If the index sustains above 48,120, anticipate a potential rise towards 48,524 and possibly 48,793-48,800 on a confirmed break above 48,560.
A failure to hold above 48,100 suggests a potential pullback. Look for shorting opportunities only if prices decisively break and sustain below 47,733 with a downside target of 47,300 - 47,289.
Flat Opening:
In a flat open scenario, support is likely around 47,940. A break and hold above 48,120 could lead to a test of 48,524, potentially facing resistance at this level. A confirmed breakout above 48,560 could open doors for further gains towards 48,793-48,800.
Conversely, a decline below 47,930 could see a drop towards 47,816-47,733. If support holds at this level, a bounce back towards 47,940 is possible. Enter short trades only if there's a confirmed break and hold below 47,700, targeting 47,300 - 47,289.
Gap Down Opening Below 47,800:
A swift recovery to 47,940 after finding support near 47,733 could lead to a potential rise towards 48,100-48,200, with further upside towards 48,524 on a breakout.
However, a breakdown below 47,700 and rejection at 47,733-47,816 could trigger a steeper decline towards 47,300-47,289.
Conclusion:
The near-term direction of Bank Nifty hinges on the opening price action and the index's reaction to key support and resistance levels. Bulls aim for a continuation of the uptrend above 48,120, while bears will look to test the support zones. Until a confirmed break below 47,700, consider buying on dips strategically.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.