Published by sensitrend date : 20/08/2023
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Check detailed analysis of Bank Nifty for this week. Weak global cues triggered a downtrend in Indian market where Bank Nifty fell below 44000.
Last week, Bank Nifty only fluctuated just a little bit, ranging between 43600.35 and 44212.75. Let's read the Bank Nifty technical analysis-based prediction for the upcoming week.
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According to my analysis, Bank Nifty is in a downward trend, however, the daily chart shows a pause in selling. So, this week might also see a potential bearish reversal, which is also possible.
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Keep an eye on 43600; if it is broken, expect a drop towards 43300-43000. Breaking the range of 44000-44100 may indicate a bearish reversal; the range to watch is 44800-45000.
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A recent "head and shoulders" pattern around 44400–44500 hints at strong resistance. Market remains indecisive unless 44000 or 43600 is breached.
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Support and Resistance Levels – S3: 42951.00 – S2: 43275.70 – S1: 43563.40 – Pivot Point: 43888.10 – R1: 44175.80 – R2: 44500.50 – R3: 44788.20
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Bank Nifty's option chain suggests a bearish outlook for this week. Highest open interest at 44000 CE and 43800 PE.
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Expect the Bank Nifty to trade in a band of 43600 to 44100. A breakout outside of this band can hint at possible new levels. This week, for further clarity, pay attention to Bank Nifty's price movements.
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Bank Nifty's PCR stands at 0.77, indicating negativity. Keep an eye on an oversold level for potential bounce-back opportunities this week. Lower PCR with fall in Bank Nifty will make the index oversold this week.
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Geopolitical concerns, crude oil prices, USD/INR exchange rates, the yield on the US 10-year bond, international equities markets, and the India Vix will all have an impact on Bank Nifty this week. However, coupled with other factors, the activity of FIIs will be crucial.
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