Nifty 50 and Bank Nifty Analysis for 21st October 2024

Technical Analysis of Nifty 50 Index

Nifty 50 chart on 18th October 2024

Trend Overview:
According to the data, the Nifty 50 saw a significant decline in the first half of the session before making a robust comeback. After plunging to a low close to 24,509.95, which served as a support level, the index rose to 24,862.65. The index stabilized around the 24,860 mark after some consolidation and slight pullbacks in the second part of the session.

Key Price Levels:
Support Levels:
24,510-24,520: The day’s low is an important level of support. The market may indicate a further downturn if it breaks this zone if it approaches again. Another possible support zone below the day’s low is 24,45024,480. This zone could be the focus of any gap down for a breakdown or reversal.

Levels of Resistance:
24,88024,900: This is the immediate resistance level that must be broken to continue the upward trend.
24,94024,960: This zone, which is essential for validating a bullish trend, maybe the goal of a break above 24,900.

Candlestick and Volume Analysis:
Following the market’s recovery from the 24,510 zone, the powerful green candles that appeared in the middle of the session indicate purchasing activity. The market is consolidating, meanwhile, as the small-bodied candles at the closing suggest that momentum waned toward the end of the session. Both purchasing and selling indicate that dealers are unsure of their next course of action.

Gap Up Opening:
There may be new buying activity if there is a gap above the 24,880 barrier. The index may aim for the next resistance level, which is close to 24,940-24,960 if it maintains above this zone during the first 1530 minutes.
Pullback Risk: The market may experience selling pressure and fall back around 24,800 or lower if it is unable to stay above 24,880.

Gap Down Opening:
A drop below 24,820 might indicate a resurgence of pessimism. The first area of support to keep an eye on is approximately 24,510–24,520. Expect selling pressure to persist, aiming for the 24,450–24,480 range, if the gap below sustains.
Bounce Potential: The index may try to retest the 24,800 resistance level if it recovers from the 24,510 level.

Flat Opening:
A rangebound session that starts between 24,510 and 24,880 could result after a flat opening at 24,860. While a fall below 24,510 would suggest additional losses, a breakout over 24,880 would be bullish.
Breakout/Breakdown Potential: Keep an eye out for a breakout below 24,510 for bearish continuation or over 24,880 for bullish momentum.

Conclusion:
Bullish => Above 24,880 → Gap Up → Target 24,94024,960.
Gap Down: Bearish → Target 24,450 → Below 24,510.
The market is expected to move in a range between 24,510 and 24,880. A break above 24,880 would suggest bullish momentum, while a breach below 24,510 would indicate bearish sentiment.

 

Technical Analysis of the Nifty Bank Index

Bank Nifty chart on18th October 2024

Trend Overview:
According to the chart, the Nifty Bank Index saw a significant decline during the initial part of the trading day, followed by modest consolidation. After plunging to a low of 51,247.90, the index recovered briefly but stayed rangebound for the rest of the day. Although the consolidation period indicates some hesitation among market players, the market finished close to 51,269.55, showing a weak sentiment.

Key Price Levels:
Support Levels:
51,24051,250: The index struck this level during the day and experienced a slight recovery, making this zone critical. If this level is broken, selling pressure may increase. 51,200: A psychological support threshold that could lead to more declines if it is exceeded.

Levels of Resistance:
The level of imminent resistance is 51,300-51,320. If it breaks above this zone, the index may signal a bullish reversal for the following session.
51,40051,450: Following 51,320, this is a critical resistance level to watch in case of a gap-up.

Candlestick and Volume Analysis:
Small-bodied candles that signify a time of consolidation follow the huge red candles that show intense selling pressure earlier in the day. The rangebound nature of the day indicates that traders are awaiting a catalyst to break the current trend, as no notable positive reversal was observed. If volume confirmation is provided, it would help determine whether this consolidation is the result of a lack of interest in purchasing or selling exhaustion.

Gap Up Opening:
A possible bullish reversal would be indicated by a gap over the 51,30051,320 zone. The index may aim for the next resistance level at 51,40051,450 if it maintains above this level for the first 1530 minutes. If the price is unable to hold above 51,320, new selling may occur, and it may return below 51,24051,250.
Reversal Scenario: The price may retreat to 51,250 or below if it is unable to stay above 51,320.

Gap Down Opening:
Further declines could be indicated by a gap below 51,250; 51,200 and possibly even lower would be the next targets. Any recovery after the gap down may see resistance at 51,25051,270. If this level remains resistant, sellers will probably take over.
Bounce Scenario: Anticipate resistance at 51,270 if there is a bounce from the gap down.

Flat Opening:
Rangebound movement would probably start between 51,240 and 51,320 if there was a flat opening close to 51,270. While a breakdown below 51,240 would suggest more bearish continuing, a breakout over 51,320 would imply a positive rise.
Breakthrough/Breakdown: For a bullish trend, look for a breakthrough above 51,320; for a bearish continuation, look for a breakdown below 51,240.
Summary:
Gap Up: Bullish → Target 51,40051,450 => Above 51,320.
Bearish → Target 51,200 → Gap Down: Below 51,240.
Flat Opening: A breakout above 51,320 would suggest bullish momentum, while a breakdown below 51,240 would indicate negative sentiment. Expect rangebound movement between 51,240 and 51,320.

Notes for Traders:
This analysis is designed to guide traders with potential scenarios and strategies for the next trading day. Traders should always combine this with their own research and employ risk management strategies. Market behavior can be unpredictable, and factors like global cues, news events, and economic data releases should also be considered when planning trades.

Open Your Demat Account and Start Your Investing

Zerodha
Fyers 
Best App For Intraday Trading
TradingView

 

 

 

 

 

Leave a Comment

Your email address will not be published. Required fields are marked *

Table of Contents

Follow Us

Subscribe now

Scroll to Top