Bank nifty has recently gone through a steep cut, shedding 4000 points in a matter of one month. Looking at the the bigger picture however, tells us it could be a great time to enter into your favorite banking names(or even the index itself!) The 4000 point decline was a wave ii retracement of the impulse that the index witnessed between Oct-Dec 2023. The corrective wave can be labelled as a zig-zag(ABC) and has retraced 61.8% of the impulsive rise. Now what should unfold will be the wave iii of III. This particular leg can be projected moving towards the 50K mark soon. On the downside 44540 can be considered as an important support for the index.
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SL trailed to 45000
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Index trend changed from down to up technically today by surpassing the 46,892 swing high.
@joyfulKitten17769, will have to work on corrective internal counts..but otherwise this remains valid till 42105 is not violated..that said there is so much room for more volatilty until a strong trend emerges.
manishsharmadw1998
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max 47000 then back to 32300 from 1st March to 1st apr
neeraj_2_sharma
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@manishsharmadw1998, That's too much downside to wish for given the good earnings growth in the sector and improving asset qualities. Also factor in the highest annual growth is coming from Indian economy currently globally. The loan growth is only getting better and unsecured bad loans are a talk of the past.
manishsharmadw1998
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@neeraj_2_sharma I don't care of fundamentals I just look chart . every thing reflects on chart. you make position based on chart exit based on chart
neeraj_2_sharma
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@manishsharmadw1998, Great! Going only by technicals alone as well, the up trend is still intact here. According to no technical analysis theory has the price trend changed from uptrend to downtrend yet. The violation of the 42,105 would be the first alarm bell and a sign of reversal.
manishsharmadw1998
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44444 is the poc market making rising wedge on weekly chart. time cycle completing on 29 Feb . I'm expecting a pull back till 46300-47215 that's it not above than that. Will see later this is my view
neeraj_2_sharma
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@manishsharmadw1998, I will keep these points and your view in mind. Thank you for sharing your views.