Interesting developments are taking place in Bank Nifty futures. Traders should focus on current Resistance zone 15600 – 16500. Global shares held firm due to Dovish comments from FED which underpinned investors risk sentiment. Hedge funds are betting heavily on emerging market currencies such as Indian Rupee and Malaysian Ringgit.
After Breaking the Key level at 14650.25, Bank Nifty continues to march higher with sustainable buying pressure. As you can see the chart, price action is forming a channel pattern at shorter time frame. This tells us that bulls are in control of market structure, but they need more force to continue pushing upside. One important fact is that current bullish trend is driven by lower participation rate. Channel formation breaking the resistance level in shallow momentum indicates the weakness of selling pressure not the strength of the Buying pressure. Resistance level at 15600.00 is a multi-time frame key level; we need to have clear breakout at this level for confirming the strength of bulls
It is important to keep an eye on selling pressure, any strong sell-off or Bearish events can change the current sentiment. Price action at key levels can either influence or test the market sentiment. See the chart for complete analysis
Market structure analysis offer more clarity during volatile conditions. It removes the noise and visualizes price action in a more consistent manner. Check out the Market structure analysis on Daily chart of Bank Nifty, and notice how it delineates the price action. Read here to know more about Market structure analysis.
We need to see shorter time frame channel pattern for potential trading opportunities. It is also important to keep an eye on price action at resistance zone 15600 – 16500. Potential support level for Bank nifty is at 14630.50 and potential resistance level is at 17120.50.
