In a larger timeframe Banknifty is just consolidating after touching a major Trendline resistance in February 2021 (Inside Bars) or we can say that the price is not able to take down the High and Low of February month yet as it is clearly visible on the charts how it tested the lows and bulls defended that territory very nicely.
Banknifty Monthly Log scale
If we look at the price consolidation it is just below the resistance so either accumulation or distribution is going at this moment that’s really hard to tell at this moment but earlier when it has approached the trendline resistance Bears very nicely set the trap for bulls showing the signs of Breakout and then Dumping Heavily (Corona Crash).
Banknifty Monthly Log Scale
We are expecting a test of highs once again in Banknifty and if there will be no follow through we’ll assume the distribution is going on in Banknifty.
This article is not a conclusion of where the trend will set in but just our assumption so kindly consult your financial advisor before making any decisions as we’ll not be liable for anybody’s profit and loss. Any queries- Info@tradetales.in
The Nifty is the flagship benchmark of the National Stock Exchange (NSE), which is a well-diversified index, comprising top 50 companies in terms of free-float market capitalization that are traded on the bourse. It is supposed to reflect the health of the listed universe of Indian companies, and hence the broader economy, in all market conditions. -ET
View- Bullish. Let’s look at the thorough technical analysis of Nifty 50. The current market price of nifty as on 04-07-2021 was 15722 and we are expecting it to reach a target of 30000 in 2-3 years.
NIFTY MONTHLY LOG SCALE
Nifty registered a top on 01-Apr-1992. After that, the prices moved in a channel till 01-Jul-2005 and then comes a massive bull domination phase for almost 4 years. If I consider the data from channel bottom and after that market crashed in 2008 which looks like a channel retest in long term charts and then again the price moved in an upward channel like before.
NIFTY MONTHLY LOG SCALE
In this chart we’ve tried to estimate the time for how the long price stayed inside the first channel and have compared it with the second one and it looks like both the channels took the same amount of time inside the channels. #Stunned So, this gives us a rough idea that for 2-3 years bulls are going to dominate the Nifty but smaller pullbacks and shakeouts cannot be ruled out even if Nifty rallies ferociously.
NIFTY MONTHLY LOG SCALE
After coming out from the first channel it is quite visible how nicely it went up and more than doubled in just a span of 2 and a half year’s. The same might happen in coming years if we are analyzing the price structure correctly. But for this thing to happen global cues also have to support, so let’s look at the chart of NYSE.
NYSE Log scale
NYSE is moving in a very nice upward channel without breaking the lows despite testing it many times. For this chart the analysis is quite simple: As you can see, there’s a midway between highway for bulls and lower lane for bears and whenever the price stayed above the midway, It has rushed madly in the upper lane of bulls. A breakout is yet to happen here and we’ll see it in the coming weeks that how it deals with this stiff resistance and if that happens we’ll have the support from global cues as well.
NYSE Cyclical chart
If we analyze the price structure here, you can see clearly that how beautifully these 2 patterns are constructed and price is behaving the same way like earlier. That’s the reason why Technical Analysts say “History repeats itself”.
DOW JONES INDUSTRIAL AVERAGE WEEKLY
Dow Jones also looks set in weekly timeframe to move much higher as the bigger reverse symmetry is tested and it has also given a Flag breakout. #BULLISH
Disclaimer- This blogpost is shared purely for the educational purposes and we are not liable for anybody’s profit or loss.
This study is totally done only on the basis of Technical Analysis. We know that a lot of factors like Economic conditions, Politics etc. are going to influence if Nifty has to double from here. It depends from person to person that how they want to play this Trend. If you are interested to know the different ways how this Trend can be played for much higher returns and low risk, Don’t wait just shoot up an E-mail at- info@tradetales.in PEACE.
After underperforming, Nifty for quite a while now; Banknifty has given a breakout on Friday after the monthly expiry of June series. Now in coming months what can we expect from Banknifty?
Pattern name- Crab Harmonic pattern
This is the daily chart of Banknifty where we can see that after breaking out from the B point of Crab pattern, it smoothly retested and started moving up and also slashed the Descending trendline. Further, we can expect Banknifty to reach the Target of point D of this pattern which is at 42222 and if that happens we can see Banknifty outperforming Nifty for coming months. Pattern invalidation – DAILY close below point C (32055).
June series top and bottom analysis
June series price action was very volatile in Banknifty but June series top and bottom was well estimated by us as shown in the above chart and now we’re completely bullish on Banknifty and expecting HH and HL with good momentum.
BANKBEES
Bank bees look very attractive here at this point for medium term investing for a target of 417- 420.
For queries you can mail us here at- Info@tradetales.in
Disclaimer- This post is for educational purposes only kindly consult your financial advisor before taking any decisions we’re not liable for anyone’s profit and loss. PEACE.
