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Nifty Bank Prediction, April 28, Monday: After a recent strong rally of 11% in the previous 7 sessions, Bank Nifty signaled consolidation with corrective bias for the third consecutive session on Friday amid profit booking. The index Bank Nifty settled at 54,664.05, shedding -537.35 points or -0.97% on Friday, April 25.
If we talk about the chart pattern, Bank Nifty formed a bear candle with a lower high and lower low.
Bank Nifty chart pattern
Market analyst Vipin Dixena noted that the index has formed a shooting star candlesticks pattern on the weekly chart, signaling a potential pause/reversal in the medium-term uptrend.
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As per Dixena, this bearish formation, especially after a strong rally, warrants caution.
The analyst had further noted that Bank Nifty is witnessing significant selling pressure between 56,000 and 55,000, which is now acting as a strong supply zone.
Bank Nifty key support and resistance
As per Bajaj Broking, the key support base is placed at 54,000-53,500 levels, being the Monday’s gap area and the recent major breakout area. On the higher side only a move above 55,500 will open further upside towards 56,200 and 56,800 levels. "On the shorter timeframes, immediate resistance lies at 55,000 - 54,900, while key support at around 54,200," said Dixena.
Bank Nifty tradingview
Dixena noted that with the recent price action, the index has slipped into a short-term bearish zone, and traders should consider a "sell on rise" strategy. Further downside cannot be ruled out in the next week, said Dixena.
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Also, the , which supports the possibility of continued consolidation/correction in the near term, he added.
Bank Nifty Outlook
"We expect index to consolidate in the range of 53,500-55,500 in the coming sessions thus working off the overbought condition developed after the recent strong rally,” said brokerage house Bajaj Broking.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
