Banknifty Daily Analysis

BankNifty Analysis 5th June 2023

Hello Friends ! Let us start BankNifty Analysis 5th June 2023. Today exactly as expected, BankNifty faced resistance at 44260 – 44265. (Check in 1 hr timeframe) So, entry for a small target, but with good risk reward bearish position got created as soon as BNF broke trendline support in 5 min timeframe.

Entry trigger

One 5 min candle closing below trendline support. Retracement till support-turned-resistance line and ENTRY

Stop Loss

Just 50% to last swing on 5 min candle (Will be different in each case depending on scenario)

Target

44086

Reason for Entry

  1. Resistance in 1 hr timeframe
  2. Support Trendline Broken
  3. Opening gap pending
  4. Head & Shoulder Formation (This we need to wait till SL taking move gets completed, not before that. Will explain in Advanced Concepts)

And BOOM!!! Exact hit till gap border.

WHAT NEXT??

Now we have to wait and watch. Market is at a dangerous level.

Bearish scenario will come only if it starts trading below the 1 hour trendline in the last figure. Till then I will not lean with the bears.

In this scene, still present buyers will get trapped and market may create a move till 43845 & then till 43616.

In the other scenario, if market moves up, then it will have to spend sometime near the 44265 level and then if it breaks, it will give a fast move till 44464, as small sellers entered today would be having their stop loss just above 44265.

If market opens flat, then wait patiently for 15-20 min for closing below 44080, for a small bearish target of 100-120 points.

So, friends Bye for Now. Will meet again tomorrow. Till then, Keep Trading, Keep Learning and Keep Winning. 🙂

*In addition to the Disclaimer, I wish to submit that, all the information given here are only for education purpose and I dont give any buy or sell ideas. Investments / Trading in Stock market is subject to market risk and please consult with your financial advisor before taking any position. This blog is created only for expanding my learning through analysis and share this knowledge with my visitors. The writer will not be responsible for any profit or loss directly or indirectly due to the information given in this blog. I do not take responsibility for any information or product link in the pinned comments or in this blog. Hence, please be at your own risk while using/acting on them. Thanks for your support.

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