Can Bank Nifty Cross 22000 by the 1st of October?

Bank Nifty has faced stiff resistance in the 21800-22000 region, and the market may test lower levels in the coming days. Despite the potential for a breakout, positive news has been absent, complicating the climb to higher levels in the upcoming expiry of 1st October.

Market Sentiment and Technical Analysis

According to technical analysis, the market is currently showing signs of weakness. The technical chart suggests that Bank Nifty might not sustain itself above the current levels, making it difficult to predict a strong uptick. The bat pattern observed in Bank Nifty indicates a potential consolidation around the 21700-21800 range, with little potential for significant gains in the short term.

Factors Influencing Bank Nifty

Traders and investors are avoiding long positions due to the lack of positive news. The market's valuation is being affected by the delay in the judgment on the moratorium, leading to interim selling. However, today's correction has attracted new buyers, helping the index remain within a range with a positive bias. This suggests that the market might see a breakthrough if strong positive news emerges.

Predictability and Market Expectations

The predictability of market movements is often a source of frustration. It is widely acknowledged that unless one can accurately predict market movements, the chances of becoming rich in this field are very low. However, for those who do accurately predict, it represents a significant opportunity to profit. While astrology and deception are often seen as the only reliable methods for prediction, traditional technical analysis offers a robust framework for understanding market behavior.

Technical Chart Analysis

As of 29/09/2020, Bank Nifty showed a high of 21800, followed by a consolidation phase. Although it managed to make a higher high, the gain failed to sustain, highlighting the need for a breakout to confirm a strong move. A strong bullish marubuzo formation suggests potential for a break of the upper level, which could lead to a cross of the 22000 mark by the end of the week.

Conclusion and Recommendations

While the market sentiment remains cautious, Bank Nifty might still see a small rally. Our trading suggestion is to short Bank Nifty in the range of 21650-21850 during every bounce and wait for lower levels of 20500 and below for the next week. For continued analysis and live market trading updates, follow us for daily pre-market open views and regular trading calls.

Happy trading!

Related Keywords: Bank Nifty, Stock Market Forecast, Technical Analysis