BANKNIFTY to 48300 in 2024?This chart on the Bank Nifty 2-hour timeframe tells a story of critical support and resistance levels. After breaking down from the rising channel and falling below the 50-period SMA, the index has shown weakness, retesting the channel and getting rejected near key moving averages. Bullish sentiment remains in check, with potential recovery only if the price can break above 51,600, which aligns with the 20-period and 50-period SMAs, as well as the 0.236 Fibonacci retracement level. However, as of now, the rejection suggests downside risk.
The immediate support stands around 51,212, with a potential downside to 50,194 and even further into the 48,900 zone if the selling pressure persists. A clear bear flag formation on the higher timeframes adds weight to the bearish outlook.
Traders should watch these levels closely, with 51,600 being the crucial point for a bullish reversal. The current market structure indicates a probable correction phase unless bulls regain control above that resistance level. Keep a close eye on volume spikes for confirmation!
