Nifty Bank Share Price – Powerful Analysis (2023)

Lets do analysis on current nifty bank share price ,and its future prediction. As we know currently both the indexes , nifty and nifty bank are trading at all time high . What is the current price behavior on chart and where it can move , we will check by looking at current price action , chart patterns , and candle stick patterns on chart. We will do multi time frame analysis on niftybank chart and based on that we will identify entry , exit , stoploss .

1. Nifty Bank Share Price -Current trend analysis -Hourly Time-Frame

Nifty Bank Share Price

In above image , we can see nifty bank share price , was consolidating since May’23. Now after long consolidation it gave a fresh breakout

upside. Price action rule tells most breakouts are tends to fail. So there are two possibilities now, whether the breakout will sustain or it may

fail. From candle stick formations , we can interprets the next move. Now after a valid breakout prices tends to move upside in a way when

buyers are more and less sellers will involved. See in below image.

2.Nifty Bank Share Price – Psychology of buyers and Sellers

Nifty Bank Share Price had given a breakout. Now we can assume that prices will move upside where buyers will more and sellers will lesser. So

Prices will move upside in a narrow channel. Which will further converted into a wide channel , where buyers / sellers ratio will be 60:40. Lets see

it in below image.

3. Nifty Bank Share Price – Channel formation

Nifty Bank Share Price will move in this manner now on 1 hour timeframe. Then it may shift to some period of consolidation again before starting of any new trend , whether uptrend or downtrend. Swing trade entry may be taken after a breakout is confirmed. For this confirmation , we can wait for a price action entry . We can wait for a pullback ( retest) of the zone from where breakout occured. Soe traders take entry as soon as breakout happens . Some traders wait for the confirmation in terms of a pullback and again breakout. The major trend in Nifty Bank Share Price is an uptrend.

So if we are trend following traders , we can take upside buy signals on an uptrend in lower timeframes. Lets see possible entries in Nifty Bank Share Price.

4. Nifty Bank Share Price – Entry possibilities

After a valid entry we should follow the trend as a trend following or price action trader. We know the behaviour of Price ,in line with the market structure . As we discussed in the earlier blog , this is a breakout from an accumulation phase on an uptrend. Noww prices will rise in a narrow channel , which will converted in a wide channel and then uptrend may hold and prices may go into a consolidation phase before starting of any new trend.

I hope this may useful in understanding and taking a trade in ,interesting to see the Nifty Bank Share Price now. On daily timeframe we can see the trend is bullish . We did our analysis on Nifty Bank Share Price on hourly timeframe. We can take long entry on hourly as well as lower timeframe . For example if we are aggressive trader , and taking the breakout as soon as it happens , we can take it on Hourly timeframe. But if we are waiting for a pullback, then we can check candle stick pattern or price action patterns like a double bottom , or a bullish pin bar or a bullish engulfing , on 15m time frame to take a long entry.

5. Nifty Bank Share Price – Target and Stoploss mechanism

As a trend following trader , we should not fix our target. Some traders fixed their targets in terms of RR. Like 1:1 or 1:2 or 1:3 based on their trading systems. Some traders uses Dynamic support based target .For that they use moving averages for their exit strategies. Priceaction or candle sticks patterns like a valid double top or an inverted hammer or a bearish engulfing or a head and shoulder on lower (15m) timeframes may be used to make an exit. Stoploss may be set to a recent swing low and can be trail using price movement or following any moving average to be used as dynamic support or resistance.

2 thoughts on “Nifty Bank Share Price – Powerful Analysis (2023)

  1. Dipak

    Mention entry and SL levels with analysis of different synario at breakout or pullback.It will useful and can be used for real trade.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *