Recently, Bank Nifty has rallied upto 5.00% after testing the low of 32500 at the end of June.
The recent bounce back has sparked somewhat a kind of temporary optimism among investors and traders.
But if we look at the Big Picture in Bank Nifty and the entire domestic and global markets, the scenario is still somewhat bleak.
Take a look at the Price Action of Bank Nifty in the weekly chart, to get clarity on the current situation.
Price Action Analysis of Bank Nifty in Weekly timeframe
Observing the market behavior since the beginning of 2022, we can notice that Bank nifty is still in the correction phase.
Prices are trading between the Parallel resistance and Parallel support as a downward range. Important resistance is around 36000 and important support is around 32000.
Price action must clearly hold above the support zone and break the resistance zone to confirm a strong upward pressure in the index prices.
A good momentum must develop in the index prices. Unless and until that, Bank Nifty is likely to be struck within the correction phase.
Dear Traders and Investors keep an eye on the Big Picture and don’t get trapped by the ebbs and flows of the Market. In these types of market conditions, always trade with proper risk management.
Checkout the Video Link Below to understand more about Wyckoff Price action analysis
